EURO STRUGGLES NEAR THREE-WEEK LOW VS DOLLAR; EURINR DOWN 1%

Published on Jul 28, 2023 11:57

Euro came under massive selling pressure against the dollar and extended decline towards $1.09 levels during Asia hours today. The single common currency is lingering close to three week low against the greenback that is basking over improved US economic data overnight. The dollar index recovered well above 101 mark and is staying close to the levels that is weighing down major peers. Meanwhile, the euro surprisingly shed gains in reaction to ECB monetary statement yesterday where the central bank decided to raise the three key ECB interest rates by 25 basis points as inflation continues to decline but is still expected to remain too high for too long. The Governing Council is determined to ensure that inflation returns to its 2% medium-term target in a timely manner. Meanwhile, improved data from the US is adding to optimism that country may avoid a recession and is also seen paving way for the Fed to continue to its focus on inflation, keeping dollar firm. Currently the EURUSD pair is trading at $1.1008, largely unchanged on the day. Meanwhile, EURINR on the NSE futures were trading at 90.51, down 1% on the day.