Currency Buzz: Euro Pulls Back Under $1.02 As Dollar Firms

26 Jul 2022 , 04:53 PM

Euro pulled back against a firm dollar on Tuesday, as all focus shifts to Federal Reserve policy action at the end of the two day meeting which begins today. Deteriorating data from Euro zone coupled with soaring inflation that led ECB to tighten interest rate for the first time in 11 years at a time when the world is seen heading into recessionary mode is sure to weigh on the currency. Meanwhile, ongoing energy crisis as Russia tightened its gas squeeze on Europe on Monday as Gazprom said supplies through the Nord Stream 1 pipeline to Germany would drop to just 20% of capacity too pressured the common currency. EUR/USD was down nearly 1% at $1.013. The dollar index which measures the greenback against a basket of other major currencies was trading higher by 0.60% at 107. The dollar recently touched a 20-year high of 109.290 in mid-July. Powered by Commodity Insights