Euro Falls as US Interest Rate Hike Expectations Rise

The euro came under pressure in European trading on Monday as interest rate differentials between Europe and the United States widened.

The EUR/USD fell more than 0.1% to $1.1474, resuming losses against the US dollar after a two-day pause, and moving closer to a seven-week low.

The Federal Reserve's hawkish meeting last week has strengthened expectations for another US interest rate hike before the end of the year, with Minneapolis Federal Reserve President Neel Kashkari saying that inflation remains far too high and has broadened beyond the oil price shock caused by the Iran war.