A deal to reopen the Strait of Hormuz lifts risk sentiment, pushing the euro higher against the dollar in early trading.
The EUR/USD pair climbed to 1.1590 in early Asian trading on Tuesday, extending gains after a US-Iran agreement to reopen the Strait of Hormuz. The deal eased geopolitical tensions, boosting demand for riskier assets like the euro.
Prior to the agreement, the pair had traded near 1.1550, reflecting cautious sentiment amid Middle East uncertainties. The Strait of Hormuz is a critical chokepoint for global oil shipments, and disruptions had previously weighed on market confidence.
The rally in the euro aligns with broader risk-on moves, though trading volumes remain subdued in early Asian hours.