The currency pair fell to 1.1598 as US-Iran tensions bolstered the dollar and stoked Fed rate hike expectations.
EUR/USD declined to 1.1598, its lowest level in six weeks, as escalating US-Iran tensions fueled demand for the US dollar. The geopolitical conflict raised concerns over inflationary pressures, increasing bets on potential Federal Reserve tightening.
The pair has been under pressure amid shifting market sentiment, with the dollar strengthening on safe-haven flows. Prior sessions saw EUR/USD trading near 1.17 before the latest downturn, reflecting broader risk aversion.
Markets are now pricing in higher odds of Fed rate hikes as inflation risks mount, further weighing on the euro.