Geopolitical risks from fresh US military strikes in Iran drive demand for the safe-haven USD, pressuring the Euro.
The EUR/USD pair fell to 1.1620 in early Asian trading Thursday, extending losses below 1.1650. The decline follows new US military strikes in Iran, escalating regional tensions and weighing on risk-sensitive assets like the Euro.
Prior to the strikes, the pair had traded near 1.1650, with investors monitoring geopolitical developments. The USD typically strengthens during periods of heightened risk aversion, acting as a safe-haven currency.
No immediate market reaction data was provided, but further volatility in currency and commodity markets is likely if tensions persist.