Euro Surges to Seven-Week High as Middle East Tensions Ease

The euro strengthened against major global currencies on Monday as market sentiment improved due to easing geopolitical tensions in the Middle East and reduced military exchanges between the US and Iran.

The sharp decline in global oil prices has also eased inflationary pressure on European Central Bank policymakers, making it less likely for a September interest rate increase. The euro rose more than 0.25% against the US dollar to $1.1559, its highest level since June 17.

The US Dollar Index fell about 0.3% on Monday, extending losses for a fifth straight session and dropping to a seven-week low of 99.42. Oil prices dropped more than 8% on Monday, approaching their lowest levels in several weeks as concerns over supply disruptions from the Middle East eased.