The euro deepens its losses to a 3-month low amid selling pressure.

The euro fell in the European market on Tuesday against a basket of global currencies, deepening its losses for the fifth consecutive day against the US dollar and hitting a three-month low, as selling pressure on the single currency continued, with buyers focusing on the US dollar as the best available investment.

The slowdown in inflation in Europe during October led to a decrease in inflationary pressures on monetary policymakers at the European Central Bank, and revived the prospects of a cut in European interest rates next December.

Price overview

Euro exchange rate today: The euro fell against the dollar by 0.2% to ($1.1498), its lowest level since August 1, from today's opening price of ($1.1520), and recorded a high of ($1.1521).

The euro ended Monday's trading down 0.15% against the dollar, its fourth consecutive daily loss, amid negative pressures.

US dollar

The dollar index rose by about 0.2% on Tuesday, extending its gains for the fifth consecutive session and hitting a three-month high of 100.05 points, reflecting the continued rise in the US currency against a basket of major and minor currencies.

This rise is due to dollar purchases as the best available investment, amid growing doubts about the likelihood of the Federal Reserve cutting interest rates next December, especially with the successive hawkish comments from some US monetary policymakers.

The Federal Reserve cut interest rates last week, in its second consecutive cut, but its chairman, Jerome Powell, indicated that this could be the last cut of the year.

European interest rate

Data late last week showed that overall inflation in the eurozone slowed as expected in October, while core inflation continued to rise, reducing inflationary pressures on monetary policymakers at the European Central Bank.

Following that data, the money market's pricing in the likelihood of the European Central Bank cutting European interest rates by about 25 basis points in December rose from 10% to 25%.

In order to reprice the above probabilities, investors are awaiting the release of several economic data points in Europe, in addition to monitoring comments from European Central Bank officials.