Euro Falls to Over Seven-Month Low

2026-03-13 09:02 By Joana Ferreira 1 min. read

The euro extended its recent decline, falling below $1.15 to its weakest level since late July, as the US dollar gained broadly amid escalating tensions in the Middle East.

With no signs of de-escalation, the common currency faced additional strain from oil prices climbing above $100 per barrel, highlighting Europe’s persistent vulnerability: rising energy costs weigh on the trade balance and dampen the euro.

The surge in energy prices has prompted money markets to price in two European Central Bank rate hikes this year, a sharp reversal from last month, when no moves were expected.

Focus is turning to the ECB’s upcoming policy meeting, where President Christine Lagarde is expected to signal how the bank plans to shield the eurozone from inflationary pressures stemming from the conflict.

Earlier this week, she emphasized that the ECB would act to prevent a repeat of the inflation shocks seen after Russia’s invasion of Ukraine.



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