Euro Riding High Against Waning Dollar Overseas; EURINR Futures Rebound

Published on Jul 18, 2023 11:59

Euro is riding high against a waning dollar overseas as a possible peaking of rate hikes by the Fed is fizzing out the buoyant journey in the greenback seen during recent times. EURUSD is steadying close to $1.13 levels as recent US data reinforced reduced bets of a rate hike. Meanwhile, the dollar index struggles below 100 mark, its lowest level since April 2022 amid large scale sell-off. US benchmark treasury yields are also trading lower at around 3.7% after hitting 4% last week. On the other hand, euro stays firm amid hawkish bias by European central bank to bring down core inflation that still stays sticky. Upcoming US retail sales later today would be crucial for further cues. Meanwhile, ECB Lagarde in her speech at ECB conference on central, eastern and south-eastern European countries yesterday mentioned that ECB has a key role to play here as the guardian of the euro. Our monetary policy plays an important anchoring role for the CESEE region, as the euro is widely used in trade invoicing and financing, she noted. On the NSE, EURINR futures rebounded today and are trading at 92.34, up 0.11% on the day.