Euro Hits Two-Week High Ahead of ECB Rate Decision

The Euro has reached a two-week high as investors await an interest rate decision from the European Central Bank (ECB). The currency is hovering near $1.1670, close to its highest level in over a week.

Money markets expect a quarter-point rate increase from the ECB, which has fully priced in this outcome.

The US dollar, on the other hand, remains flat at 98.77, caught between hawkish Federal Reserve rate expectations and persistent weakness against major continental rivals.

A dramatic escalation in Persian Gulf military friction has pushed oil prices above $101 a barrel, threatening to unleash cost-push inflation across energy-importing European economies.