Euro Extends Gains as European Interest Rate Hopes Intensify

The euro has seen gains against a basket of global currencies in European trading on Tuesday, maintaining its upward trend for a second consecutive day.

This surge is largely attributed to weakness in the US dollar ahead of key US inflation data. The euro's rise was further bolstered by expectations of a European interest rate hike in September, as policymakers grapple with intensifying inflationary pressures.

The US dollar index fell 0.2% on Tuesday, hitting a three-week low of 98.72, while the yield on the 10-year US Treasury note dropped more than 0.25%, putting downward pressure on the US currency in the foreign exchange market.