Euro Hovers at 3-Month Low

2026-06-22 10:09 By Agna Gabriel 1 min. read

The euro weakened to $1.146, hovering at its lowest level since mid-March, despite signs of diplomatic progress between the US and Iran.

Negotiators from Tehran and Washington agreed on a roadmap toward a potential final agreement, easing concerns over energy supply disruptions.

Investors also monitored developments in UK politics after Prime Minister Keir Starmer announced his resignation.

Oil markets reacted positively to signs of progress in Middle East discussions, even as President Donald Trump warned of possible military action if Hezbollah attacks from Lebanon against Israel continue.

The US and Iran have also established a communication channel to prevent incidents and support the safe movement of commercial vessels through the Strait of Hormuz.

Meanwhile, money markets continue to price in at least one additional European Central Bank rate hike this year, following the ECB’s recent 25 bps increase that lifted the deposit rate to 2.25%, the first rate rise since 2023.



News Stream
Euro Hovers at 3-Month Low
The euro weakened to $1.146, hovering at its lowest level since mid-March, despite signs of diplomatic progress between the US and Iran. Negotiators from Tehran and Washington agreed on a roadmap toward a potential final agreement, easing concerns over energy supply disruptions. Investors also monitored developments in UK politics after Prime Minister Keir Starmer announced his resignation. Oil markets reacted positively to signs of progress in Middle East discussions, even as President Donald Trump warned of possible military action if Hezbollah attacks from Lebanon against Israel continue. The US and Iran have also established a communication channel to prevent incidents and support the safe movement of commercial vessels through the Strait of Hormuz. Meanwhile, money markets continue to price in at least one additional European Central Bank rate hike this year, following the ECB’s recent 25 bps increase that lifted the deposit rate to 2.25%, the first rate rise since 2023.
2026-06-22
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