The euro fell in the European market on Thursday against a basket of global currencies, deepening its losses for the third consecutive day against the US dollar and hitting a three-week low, as investors continued to shy away from risk and focused on buying the US currency as the best alternative investment, amid the United States considering extending the naval embargo imposed on Iran.
The European Central Bank concludes its third monetary policy meeting of 2026 later today, with expectations that interest rates will remain unchanged for the seventh consecutive meeting. The anticipated statement is expected to provide further clues and clarifications regarding the future path of interest rates this year.
Price overview
Euro exchange rate today: The euro fell against the dollar by about 0.2% to ($1.1655), its lowest level since April 9, from today’s opening price of ($1.1676), and recorded a high of ($1.1689).
The euro ended Wednesday's trading down 0.3% against the dollar, its second consecutive daily loss, due to threats from the US military to launch limited strikes on Iran, as well as a hawkish meeting of the Federal Reserve.
US dollar
The dollar index rose 0.15% on Thursday, extending its gains for the third consecutive session and hitting its highest level in nearly three weeks, reflecting the continued rise in the US currency against a basket of major and minor currencies.
This rise comes as investors focus on buying the US dollar as the best alternative investment, amid growing fears that the current peace talks between the United States and Iran will falter, and increasing likelihood of renewed military confrontations in the Middle East.
Efforts to end the war with Iran have reached a dead end, with Donald Trump expressing his displeasure with Tehran's latest proposal, as the US president wants to address the nuclear issue as a key part of a peace agreement.
President Donald Trump also discussed with major oil companies ways to mitigate the impact of the US embargo on Iranian ports, which could last for several months, in order to ensure stable supplies and reduce pressure on global energy markets.
global oil prices
Oil prices continued their upward trend in global markets, with Brent crude hitting its highest level in six weeks, amid concerns about prolonged supply disruptions as the Strait of Hormuz remains closed.
Media reports indicate that the US military will brief Trump on potential actions against Iran during a meeting later today, which could include short, powerful military strikes targeting Iranian infrastructure.
European Central Bank
The European Central Bank concludes its third regular monetary policy meeting of 2026 later today, amid expectations that interest rates will remain unchanged. The anticipated statement is expected to provide further clues and clarifications about the future path of interest rates throughout this year.
Expectations are currently settling on keeping European interest rates unchanged at the 2.15% range, which is the lowest level since October 2022, for the seventh consecutive meeting.
The European interest rate decision and monetary policy statement will be released by 12:15 GMT, while European Central Bank President Christine Lagarde will speak at the press conference by 12:45 GMT.
Euro performance forecast
Here at FX News Today, we expect that if the European Central Bank’s comments come in less hawkish than the markets anticipate, the chances of a European interest rate hike this year will decline, further exacerbating the euro’s losses against a basket of global currencies.
