Euro could be worth less than U.S. dollar by Jan. 2018

 The euro could reach parity with the dollar by January 2017 — and it could fall as low as 90 cents by January 2018, Goldman Sachs said Friday in a research note.

Goldman GS, -1.53%   revised its forecasts for several currency pairs to reflect what it predicts will be a prolonged period of dollar strength DXY, +0.44%  as the U.S. economy continues to show strong growth ahead of imminent interest-rate increases by the Federal Reserve.

The euro EURUSD, -0.22%   is likely to continue to fall relative to the dollar

The bank also lowered its year-end 2015 forecast for the euro’s  value relative to the pound EURGBP, +0.14%  to £0.73, from its previous forecast of £0.75. It left its year-end 2016 and year-end 2017 forecasts unchanged at £0.70 and £0.65 pounds.