The euro declines for a second day as expectations of tighter Federal Reserve policy strengthen the US dollar.
EUR/USD trades near 1.1610 in Asian hours, extending losses for a second consecutive day. The pair weakens as the US dollar gains ground amid rising expectations of a hawkish Federal Reserve stance on monetary policy.
The dollar’s strength follows recent signals from Fed officials suggesting a potential shift toward tighter policy. Market participants are pricing in higher odds of rate hikes or reduced accommodation, contrasting with the European Central Bank’s more cautious approach.
No immediate market reaction data was provided, but the currency pair’s movement reflects broader sentiment shifts in response to central bank policy expectations.