Euro in commanding position, holds above 101 mark against INR

Euro stayed in a commanding position against the US dollar as markets eyed possibility of a near term interest rate cut by the US Federal Reserve. The US central bank could start rate cuts this month after Fed Chair Jerome Powell, asked if July was too soon to consider rate cuts, said he can't say it but that the decision would depend on the economic data. Dollar index struggled near a multi-year low following these comments though Powells overall assessment of monetary policy was cautious. EUR/USD pair added to its recent gains amid these cues, holding around four year high. The Euro recorded its longest winning streak against the dollar in more than two decades in last week, clocking a spurt of around 1.50%. Economic cues are supporting the Euro. Eurozone Manufacturing PMI came in at 49.5 in June, up slightly from 49.4 in May and marking the highest level in nearly three years. The data reflects gradual stabilization across the blocs industrial base, with output expanding for the fourth straight month even as headline figure remains below the 50-mark, signaling the sector is still technically in contraction. EUR/USD currently quotes at 1.1842, up marginally on the day. On the NSE, EUR/INR futures are trading at 101.30, up 0.02% on the day after edging up to 101.40 in early moves.

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