The euro falls against the dollar amid rising bets on Federal Reserve rate increases and geopolitical tensions.
The EUR/USD pair declined to 1.1380 in early Asian trading on Wednesday, extending losses as the US dollar strengthened. Investors priced in higher chances of Federal Reserve rate hikes, bolstering demand for the greenback.
The pair had previously traded above 1.1400 but retreated as markets reassessed US monetary policy and geopolitical risks, including US-Iran developments. No immediate catalysts were cited for the move, though broader risk sentiment weighed on the euro.
Traders remain focused on upcoming economic data and Fed commentary for further direction.