Euro Tumbles Amid Growing Uncertainty Over Strait of Hormuz

The euro declined against the US dollar on Friday for the second consecutive session due to uncertainty surrounding negotiations between the United States and Iran over reopening the Strait of Hormuz.

Oil prices rose by around 0.5% as global energy supplies from the Middle East are a concern, increasing inflationary pressures facing European Central Bank policymakers.

This has strengthened expectations for a European interest rate hike in September, with money market pricing for a 25-basis-point increase rising to 35%.