Euro Firms Up at $1.16 as ECB Rate Hike Looms Amid Inflation Pressures

The euro stabilized at around $1.16 as investors await the European Central Bank's policy meeting later this week, where a rate hike is widely expected.

Rising oil prices have added to inflation concerns, pushing Brent crude to a fresh six-week high amid renewed US-Iran fighting and reports of an agreement between Iran and Oman on shipping through the Strait of Hormuz.

Persistent inflation pressures and resilient economic growth are putting pressure on central banks to maintain a restrictive policy stance, with the ECB expected to raise interest rates on Thursday.