Dollar Weakness and Safe-Haven Demand Drive EUR/USD to New High

The EUR/USD exchange rate reached its fourth consecutive high near 1.1680 in Asian hours, as the US Dollar weakened after the Treasury announced plans to double bond buybacks beyond $4 billion.

This move aims to contain higher yields, but may have unintended consequences on the Greenback's value. Meanwhile, escalating tensions between the US and Iran have sparked concerns about safe-haven demand for the dollar, potentially offsetting its decline.

The Euro received support from inflation dynamics and ECB policy expectations, as one-year Eurozone consumer inflation expectation eased to 2.9% in June, still above the ECB's 2% target.