Safe-haven demand lifts the USD as geopolitical risks escalate following new US military actions against Iran.
The EUR/USD pair dropped to 1.1630 in early European trading on Tuesday, extending losses below 1.1650. The decline follows renewed US-Iran tensions after recent military strikes, which have dampened optimism for a near-term peace deal.
Prior to the move, the pair traded near 1.1670 in the previous session. The USD has strengthened broadly as investors seek safety amid escalating geopolitical risks, reversing earlier gains in the euro.
Markets are monitoring developments closely, with the dollar index holding firm against major peers.