The European single currency is likely to maintain its firm posture in the coming days, money experts said on Monday. The emerging geo-political scenario is favouring euro to extend its gains versus world leading currencies, they observed. In world markets, euro is inching up with modest gain versus dollar.
They said that after the US invasion of Iraq, the political instability in the region was not coming down which has caused sky-high increase in oil prices widening trade deficit, weaker-than-expected economic reports and next months elections pushing down the dollar.
The other boosting factor for euro is UK economy, which is moving slowly but steadily and its higher interest rate is soothing the currency.
Under the prevailing circumstances, both euro and pound sterling are riding on the back of dollar. In the coming days, the euro might touch the new high versus the local currency at Rs 75. The pound sterling also maintained its rise and peaked at Rs 108 in the open market, dealers said.
In world markets, the euro was available at 1.2400 dollars, little changed from its New York close and around half a cent below seven-month highs.
With the euro holding in a rough range of 1.1950 dollars to 1.2450 dollars since June, gains through 1.2450 dollars were expected to be difficult.