Euro Hits Three-Month Low as Hawkish Fed Outlook Weighs

The Euro has fallen to a three-month low against the US Dollar as the Fed's hawkish outlook continues to weigh on the currency.

The EUR/USD pair has been declining since late June, and at the time of writing, it was trading around 1.1331, down 0.35% on the day.

Traders remain focused on the inflationary impact of elevated Oil prices and the resulting expectations of higher US interest rates, which are pushing up US Treasury yields to multi-year highs.

The benchmark 10-year yield has climbed to 5.28%, its highest level since 2007, making Dollar-denominated assets more attractive and widening the interest-rate gap between the United States and the Eurozone.