Euro Hits Three-Month High Amid Sanctions Fears and Interest Rate Expectations

The euro has reached its strongest level in three months as traders await potential US sanctions on Iran.

This comes amid expectations that the Federal Reserve may cut interest rates sooner than the European Central Bank, reducing the dollar's yield advantage and supporting the euro.

Geopolitical tensions have also added a risk premium to the euro's outlook, with investors bracing for potential disruptions to global energy supplies and shifts in capital flows.