The Euro weakens against the Dollar as geopolitical risks drive safe-haven demand amid fears of a broader conflict.
The EUR/USD pair fell to near 1.1515 during early Asian trading on Friday, extending losses as escalating US-Iran tensions fueled risk aversion. Investors shifted toward the US Dollar, a traditional safe-haven asset, amid concerns over a widening conflict in the Middle East.
Prior to the decline, the pair had traded in a narrow range, with recent sessions marked by muted volatility. The move lower contrasts with last week’s modest gains, as markets had largely priced in a pause in geopolitical risks before the latest developments.
The immediate reaction saw the Euro under pressure, while US Treasury yields edged lower as demand for safety grew. Equity futures in Asia also pointed to a weaker open, reflecting broader market unease.