Euro Tumbles Below $1.07 Amid Dollar Strength Overseas; EURINR In Negative

Published on Sep 21, 2023 14:02

Euro tumbled below $1.07 and touched a one-week low on Thursday tracking massive gains in the dollar overseas after a hawkish FOMC statement. The Federal committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent but will continue to assess additional information and its implications for monetary policy. The central bank`s latest projections suggest Fed officials expect one more rate hike this year, forecasting a median rate of 5.6 percent by the end of 2023. The forecast for rates at the end of 2024 was raised to 5.1 percent from 4.6 percent in June, while the outlook for rates at the end of 2025 was increased to 3.9 percent from 3.4 percent. Benchmark US treasury yields spiked towards 4.4%, a fresh 16-month high after a hawkish Fed that pushed dollar index to a fresh six month high. This took a toll on major currencies as Euro and Pound lost heavily. Large currency speculators continued to cut their net long positions in the Euro futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC). The non-commercial futures contracts of Euro futures, traded by large speculators and hedge funds, totaled a net long position of 113080 contracts in the data reported through September 12, 2023. This was a weekly crash of 23151 net contracts and took the net longs to ten month lows. Meanwhile, EURUSD that carries maximum weight in the dollar index plunged nearly half a percent to hit a low of $1.0656 and is currently quoting at $1.0696, down 0.28% on the day. On the NSE, EURINR September futures are trading lower by 0.36% at 88.67.