The euro rose in the European market on Monday against a basket of global currencies, resuming its gains that had paused on Friday against the US dollar, approaching its highest level in several weeks, benefiting from the decline in US currency levels amid an assessment of developments in the peace talks between the United States and Iran.
European Central Bank President Christine Lagarde said last week that the option of raising interest rates was discussed extensively during the last meeting, and indicated that the next meeting in June would be the right time to reassess the course of monetary policy.
Price overview
Euro exchange rate today: The euro rose against the dollar by about 0.25% to $1.1747, from Friday's closing price of $1.1719, and hit a low of $1.1720 during today's trading.
The euro ended Friday's trading down 0.1% against the dollar, amid profit-taking and corrective moves, after earlier hitting its highest level in nearly two weeks at $1.1785.
US dollar
The dollar index fell more than 0.2% on Monday, resuming losses that had paused on Friday, reflecting the decline in the US currency against a basket of major and minor currencies.
This decline comes amid a slowdown in purchases of the US dollar as a safe haven, as the market assesses the latest developments in the intensive talks between the United States and Iran.
Iranian state media reported that the United States conveyed its response to Iran's 14-point proposal through Pakistan. Tehran seeks to end the US sanctions and postpone nuclear negotiations, while Washington insists on making the nuclear agreement a priority.
US President Donald Trump stated that Washington would begin efforts on Monday morning to free ships stuck in the Strait of Hormuz, as a humanitarian gesture to help neutral countries in the US-Israeli war with Iran.
European interest rate
In line with expectations, the European Central Bank last week kept its main interest rates unchanged at 2.15%, the lowest level since October 2022, for the seventh consecutive meeting.
The president of the European Central Bank said that the council made a unanimous decision to hold rates steady, despite a lengthy discussion of the option to raise them, noting that next June would be the appropriate time to reassess the course of monetary policy.
Following the meeting, the money market pricing in the likelihood of the European Central Bank raising European interest rates by about 25 basis points in June rose from 35% to 55%.
In order to reprice those possibilities, investors are awaiting the release of more economic data in the Eurozone, particularly regarding inflation, unemployment and wage levels.
