The euro continued to drift higher supported by a rise in a key indicator of German confidence and amid speculation that the US Fed may signal that its rate hiking cycle is coming to an end soon. The Ifo index rose to 93.3 in June from 92.9 in May, in line with expectations and partly reflecting a slight improvement in the business outlook due to the recent fall in the euro's rate against the dollar. The news, which came at a time when the euro was already on the rise, brought the currency further support. "The euro has recovered more ground in the overnight session and in the short term, has the opportunity to extend those gains," said Mark Austin at HSBC. After a somewhat quiet start to the week, things hot up on Thursday when the Federal Reserve Open Market Committee announces its interest rate decision where a further 25 basis point hike to 3.25 pct is widely expected. But focus will be more on the accompanying statement which will be closely scrutinised for any indication that the Fed will be taking its foot off the pedal any time soon. While the majority of observers believe the Fed will continue to say that borrowing costs are set to rise at a measured pace, some doubt has started to creep in. Against this backdrop, some feel that betting against the dollar may bring good rewards.