Euro Slumps Amid US-Iran Tensions, Eyes Lagarde Testimony

The euro plummeted against a basket of global currencies in European trading on Monday, nearing its two-month low as investors sought safer assets amidst escalating tensions between the United States and Iran.

The EUR/USD fell by 0.15% to $1.1373 from Friday's opening level of $1.1390, with a high of $1.1391.

This decline comes after the euro's 0.85% loss against the dollar last week, its third consecutive weekly decline amid concerns over the widening interest rate gap between Europe and the United States.

Investors are eagerly awaiting testimony from European Central Bank President Christine Lagarde before the European Parliament in Brussels later today, as her remarks could provide clearer signals on the appropriate monetary policy response to recent developments.