Bank of Communications (Hong Kong) (Bocom) yesterday launched two structured investment products with an eye on a weakening euro and a peaking Hong Kong inter-bank offered rate (Hibor). Treasurer Edmund Lai Kin-sang forecast that the euro would fall below 1.20 to the US dollar because of political concerns, namely the fallout from French and Dutch voters' rejection of the European Union constitution and reports that some member countries were talking about abandoning the currency. 'The new focus is now on Europe's economic weaknesses, especially a slowdown in GDP growth and rising unemployment. Any more news that countries might abandon the euro will prove destabilising,' said Mr Lai. He also forecast that the US and Hong Kong interest rate cycles would peak soon after an additional increase of 75 basis points. Bocom's latest investment products - Series 3 and 4 - have a maturity of two years. Series 3 is denominated in US dollars and requires a minimum deposit of US$10,000. Bocom will observe the euro exchange rate every six months. If it is lower than half a year earlier, the bank will pay an interest of 6.23 per cent for those six months. Otherwise, the interest rate will be 0.4 per cent. Series 4, denominated in Hong Kong dollars, requires a minimum deposit of $50,000 and has a maximum interest rate of 4 per cent.