Following the declaration of downgrade of Greece, demand at the debt auction led to a dip in the tensions which have hit the euro zone, as the currency gained, on Tuesday.

The surge in the demand of Euro removed the worry over the losses the economic block has been suffering since the emergence of the crisis.

The analysts opined that the fall which Euro has been witnessing, so far, has been compensated with the rise in the demand at the auctions in Belgium, Spain and Ireland.

"There is enough to stop people from aggressively selling euro/dollar", said RBS currency strategist, Paul Robson.

He added that there is a possibility of the Euro gaining again nearing the Dollar by nearly 1.26 points.

The Euro was reported to be rising by 0.3%, at 1027 GMT, elevating from a low of $1.2167.

The currency is likely to maintain high at $1.20, against its four- year low of $1.1876, as the central bank investors are indicating the bids to near $1.2170.

According to Commodity Futures Trading Commission, the net short positions for the Euro remained slightly below the record positions in the week ending June 8.