The currency pair climbs 0.25% to 1.1625 after a ceasefire between Israel and Lebanon eases geopolitical tensions.
EUR/USD advanced 0.25% to 1.1625 on Thursday as reduced Middle East tensions curbed demand for the safe-haven USD. The move followed a U.S.-brokered ceasefire between Israel and Lebanon, raising hopes for resumed U.S.-Iran negotiations.
The U.S. Dollar Index (DXY) fell 0.20% to 99.34, though lingering disputes over Iran’s nuclear program and sanctions limited deeper losses. Iran’s Foreign Minister reported no tangible progress in talks, while rising crude oil prices stoked inflation concerns, supporting expectations of prolonged Fed rate hikes.
The euro’s gains were modest as markets weighed ECB rate hike prospects against broader USD resilience.