Euro Hits Near Seven-Week High Amid Easing Geopolitical Tensions

The euro has strengthened to its highest level in nearly seven weeks as tensions between the US and Iran ease. The single currency reached $1.155, a high not seen since June 16. This improvement in risk sentiment is driving up demand for the euro.

Crude oil prices have dropped about 10% this week after US President Donald Trump's statement that the two countries are engaged in 'very good discussions.' These talks have raised hopes of resolving their five-month conflict and reopening the Strait of Hormuz.

The decline in energy prices has reduced concerns over inflation and weaker economic growth. This is leading markets to expect a gradual approach from the European Central Bank when it comes to policy tightening.