Euro Slides to Mid-March Low

2026-06-19 08:19 By Joana Ferreira 1 min. read

The euro hovered around $1.145, its weakest level since mid-March, and was on track for a weekly decline of about 1% amid broad-based dollar strength.

Sentiment was hit after planned US-Iran peace talks in Switzerland were abruptly canceled, renewing doubts over the durability of the tentative agreement reached over the weekend to end the Middle East conflict.

The US Federal Reserve also supported the dollar after keeping interest rates unchanged but signaling a more hawkish outlook in its latest projections.

In Europe, attention remained on the European Central Bank, which recently raised rates for the first time since 2023.

Money markets now price in at least one additional ECB hike this year as officials maintain a firm stance on inflation.

Pierre Wunsch said another increase could come as soon as next month if inflation pressures broaden beyond energy, while Philip Lane suggested the euro-area economy may be able to absorb higher borrowing costs without losing momentum.



News Stream
Euro Slides to Mid-March Low
The euro hovered around $1.145, its weakest level since mid-March, and was on track for a weekly decline of about 1% amid broad-based dollar strength. Sentiment was hit after planned US-Iran peace talks in Switzerland were abruptly canceled, renewing doubts over the durability of the tentative agreement reached over the weekend to end the Middle East conflict. The US Federal Reserve also supported the dollar after keeping interest rates unchanged but signaling a more hawkish outlook in its latest projections. In Europe, attention remained on the European Central Bank, which recently raised rates for the first time since 2023. Money markets now price in at least one additional ECB hike this year as officials maintain a firm stance on inflation. Pierre Wunsch said another increase could come as soon as next month if inflation pressures broaden beyond energy, while Philip Lane suggested the euro-area economy may be able to absorb higher borrowing costs without losing momentum.
2026-06-19
Euro Slumps to 2-1/2-Month Low
The euro fell below $1.15, hitting its lowest level since late March, amid broad dollar strength as traders reacted to a more hawkish stance from the US Federal Reserve, which kept interest rates steady but revealed in its latest projections that nine policymakers now anticipate a rate hike by the end of 2026. This shift came after the European Central Bank raised rates last week and the Bank of Japan followed with a similar move earlier this week. Markets are now pricing in at least one additional ECB rate increase before year-end. Adding to the market dynamics, investors responded positively to reports of a US-Iran agreement to reopen the Strait of Hormuz, which drove oil prices to three-month lows and eased inflation pressures. Still, tensions persisted, with US President Donald Trump warning of potential renewed attacks and targeted actions against Iranian officials if the agreement’s terms were not upheld.
2026-06-18
Euro Down to March-Lows
The euro fell to $1.15, its lowest level since late March, as the US dollar strengthened broadly following the Fed’s latest monetary policy decision. While the Fed left interest rates unchanged, as widely expected, policymakers’ projections were viewed as hawkish, with around half of officials anticipating at least one rate hike in 2026. In Europe, the ECB raised interest rates by 25 basis points last week, in line with expectations, as it continues to combat elevated inflation. However, following the preliminary agreement between the US and Iran, money markets have scaled back expectations for further ECB tightening, now pricing in less than 30 basis points of additional rate hikes this year. ECB policymaker Gediminas Šimkus reiterated on Wednesday that upside risks to inflation continue to justify further monetary tightening. He said he expects at least one more rate hike to help keep inflation expectations anchored.
2026-06-17