Euro Plunges Below $1.14 Amid Fed Rate Uncertainty

The euro hit a one-month low after dropping below $1.14 as investors monitored developments in the Middle East and awaited the Federal Reserve's interest rate decision.

Although a pause in US attacks on Iran led to lower oil prices, easing inflation concerns, US Treasury yields only retreated modestly, reflecting continued caution.

European Central Bank (ECB) policymaker Peter Kazimir stated that at least one more rate increase is likely needed to curb inflation and may even justify further tightening due to a weaker economic outlook.