Euro Slides As Dollar Makes A Comeback; EURINR Down Half A Percent

Published on Jul 24, 2023 13:26

Euro is playing on the downside on Monday as the dollar index makes a firm turnaround, breaching another crucial 101 mark. The dollar index that measures the greenback against a basket of currencies is trading at 101.03, up 0.25%, snapping a two week losing streak and off its recent 15-month lows. Firmness in US benchmark 10 year treasury yields above 3.8% awaiting clarity ahead of FOMC meeting this week are also dragging the greenback higher. Meanwhile, data from the Eurozone showed German economy experienced a contraction as both manufacturing and services sectors faced downturns. The HCOB Flash Germany Composite PMI Output Index dropped for the third consecutive month to 48.3, falling below the critical 50 level, indicating contraction for the first time since January. Manufacturing production levels declined sharply for the third month in a row, with output index at 41.0, signaling a rapid decline in demand for goods. Services activity also slowed to a five-month low, with a business activity index of 52.0. EURUSD is currently trading lower by 0.42% at $1.1110. Meanwhile, on the NSE, EURINR July futures contract is quoting at 90.79, down nearly half a percent.