Euro Soars as Oil Prices Surge Past $100 Amid ECB Rate Hike Anticipation

The Asian currencies held steady on Thursday as investors awaited an interest rate decision from the European Central Bank. The euro rose towards $1.1670, nearing its highest level in over a week, as money markets fully priced in a quarter-point rate increase.

The U.S. dollar remained range-bound, caught between hawkish Federal Reserve rate expectations and persistent weakness against major continental rivals. The dollar index traded virtually flat at 98.77.

A dramatic escalation in Persian Gulf military friction pushed oil prices above $101 a barrel, threatening to unleash cost-push inflation across energy-importing European economies.