Euro Slides to Three-Month Low Amid Tighter US Policy and Energy Fears

The EUR/USD parity has hit its lowest level in three months due to market expectations of tighter monetary policy by the US Federal Reserve System (FRS) and rising energy prices in Europe.

As a result, the exchange rate fell by 0.3% in one day to 1.1332, which is the lowest since June 24 this year.

Rising tensions in the Middle East and growing oil prices are adding to global inflationary pressures.

The markets estimate that there's a 73% probability of the Fed raising interest rates by 25 basis points at its October meeting.