The euro declines 0.48% against the dollar as rising US yields outweigh ECB rate hike expectations for June.
EUR/USD dropped to near 1.1600 on Tuesday, down 0.48%, as the US dollar regained strength amid a sharp rise in US Treasury yields. The move occurred despite signals from ECB officials suggesting potential rate hikes at the upcoming June meeting.
The pair had previously traded higher on expectations of ECB tightening, but soaring US yields, driven by shifting Fed policy bets, overshadowed those prospects. Market focus remains on relative monetary policy trajectories between the US and eurozone.
No immediate market reaction data was provided, but the shift highlights investor sensitivity to yield differentials and central bank signaling.