Euro hovers around 4-year high against dollar; EUR/INR approaches 104 mark

Euro surged to a near four year high against the dollar on Tuesday tracking sustained weakness in greenback overseas. EUR/USD is currently seen quoting at $1.1880, up 0.4% on the day and at its highest level since September 2021. The pair climbed above $1.18 mark for first time since July this year. All eyes are glued to Federal Reserve’s decision on interest rates this week. The greenback is losing sheen amid firm expectations of a rate cut in its policy announcement on Wednesday. Moreover, investors will pay close attention to the monetary policy statement and Chair Jerome Powell’s press conference to get cues about the likely interest rate action in the remainder of the year. The dollar index that measures the greenback against a basket of currencies is quoting around a 7-week low of 96.65 and yield on the US 10-year Treasury held around five-month low of 4.04%. Besides, reports on US retail sales and industrial production, due later today, will be watched for further insights into the strength of the economy. On the NSE, EUR/INR futures are seen fast approaching 104 mark. Meanwhile, from the Euro zone docket, ZEW Indicator of Economic Sentiment for Germany increased to 37.3 in September from 34.7 in August. Euro Area ZEW Indicator of Economic Sentiment rose by 1 point from the prior month to 26.1 in September. Industrial production in the Euro Area inched higher by 0.3% from the previous month in July.