Euro Slumps to 10-Week Low as Traders Flock to US Dollar

The EUR/USD pair has hit a 10-week low near $1.1430 as traders favor the US dollar over the euro.

The decline has been orderly, reflecting a gradual rebuilding of long-dollar positions rather than a panic-driven move.

The dollar index recently touched a seven-week high above 100.60, and markets now assign approximately a 53% probability to another hike at the Federal Reserve's next meeting.

The European Central Bank has raised rates, taking its deposit rate to 2.50%, but officials are pushing back against assumptions that expensive energy automatically requires aggressive tightening.