Euro Slips Amid Reports of ECB Rate Hike in September

The euro has declined against major currencies in European trading on Wednesday despite reports that the European Central Bank (ECB) is preparing to raise interest rates in September.

According to a Reuters report, ECB policymakers are ready to increase the key interest rate from 2.25% to 2.50% to contain the effects of the Iranian war and prevent inflationary surges similar to those seen after Russia's invasion of Ukraine in 2022.

The US Dollar Index rose 0.1% on Wednesday, reflecting renewed strength in the US currency against a basket of major currencies.