Euro Surges to Two-Week High on US Dollar Weakness and Oil Price Rally

The euro rose against major currencies in European trading on Wednesday, extending its gains for a third consecutive day and reaching a two-week high. The currency's appreciation was supported by the continued decline of the US dollar ahead of key inflation data in the United States.

Global oil prices climbed to their highest levels in three months, adding to inflationary pressures facing European Central Bank policymakers and strengthening expectations for a European interest rate hike in September.

The euro's exchange rate rose 0.2% against the dollar to $1.1646, its highest level since August 28, from an opening level of $1.1624. The US dollar index fell 0.2% on Wednesday, extending losses for a third consecutive session and hitting a three-week low.