The euro held above $1.165 in the final full week of August, its strongest since mid-May, as investors anticipate a more hawkish ECB amid geopolitical tensions and await details on Iran sanctions. The ECB is widely expected to raise interest rates in September, following its June tightening to curb inflation pressures triggered by the US-Iran conflict and its impact on energy prices. Oil remains above $90 per barrel, with risks of further supply constraints for refined fuels, low gas inventories, and a prolonged conflict that could extend beyond November's US midterm elections. A September hike would lift the deposit rate to 2.5%, but bets on further tightening are rising. Markets see a 25% chance of 3% by March 2027 and 60% by September. Meanwhile, US Treasury Secretary Scott Bessent will hold a press conference after threatening "the toughest sanctions in history" on Iran, with markets watching for potential China targets. Iran’s foreign minister dismissed the sanctions as desperate.
The EUR/USD exchange rate fell to 1.1656 on August 25, 2026, down 0.07% from the previous session. Over the past month, the Euro US Dollar Exchange Rate - EUR/USD has strengthened 2.53%, and is up by 0.16% over the last 12 months. Historically, the Euro US Dollar Exchange Rate - EUR/USD reached an all time high of 1.87 in July of 1973.The euro was only introduced as a currency on the first of January of 1999. However, synthetic historical prices going back much further can be modeled if we consider a weighted average of the previous currencies. Euro US Dollar Exchange Rate - EUR/USD - data, forecasts, historical chart - was last updated on August 25 of 2026.
The EUR/USD exchange rate fell to 1.1656 on August 25, 2026, down 0.07% from the previous session. Over the past month, the Euro US Dollar Exchange Rate - EUR/USD has strengthened 2.53%, and is up by 0.16% over the last 12 months. The Euro US Dollar Exchange Rate - EUR/USD is expected to trade at 1.17 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.19 in 12 months time.