Rising US PCE inflation bolsters expectations for Federal Reserve rate hikes, weakening the euro against the dollar.
The EUR/USD pair fell to around 1.1365 in early Asian trading on Friday, approaching a 13-month low near 1.1350. The decline follows stronger-than-expected US PCE inflation data, reinforcing bets on further Federal Reserve interest rate increases.
Prior to this, the pair had hovered near multi-month lows as markets priced in a more aggressive Fed stance. The latest inflation print contrasts with recent eurozone data, where growth concerns have weighed on the single currency.
No immediate market reaction was specified, but the shift in rate expectations continues to support the US dollar broadly.