Euro hits three-month low against dollar
The euro fell to a three-month low against the dollar amid expectations that the Fed could adopt a tighter monetary policy stance to combat inflation, while rising energy prices in Europe fueled concerns about the region’s economy.
The EUR/USD exchange rate fell 0.3% during the day to 1.1332, its lowest level since June 24.
Rising oil prices driven by tensions in the Middle East are increasing inflationary pressures and strengthening expectations that the Fed could raise interest rates further, supporting the dollar. Markets are pricing in a 73% probability of a 25-basis-point rate hike at the Fed’s October meeting, while investors are now focused on upcoming US employment data.
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