Euro Slumps on ECB Rate Hike Signals and Escalating Global Tensions

The euro has remained below $1.14 as investors weighed the ECB's policy decision and new US tariffs.

The European Central Bank (ECB) left interest rates unchanged but signaled a potential rate hike in September due to inflation concerns.

Rising energy prices, with oil nearing $100 per barrel and natural gas surging amid the US-Iran conflict, have reinforced these expectations.

Bundesbank President Joachim Nagel warned that inflation risks remain elevated and further rate increases may be needed.