Oil Price Surge Fails to Dent Euro as ECB Rate Hike Looms

Currency markets were steady on Thursday as oil prices continued to rise and global bond yields surged. Oil futures remained above $100 a barrel for the second day, with energy flows from the Gulf slowed due to attacks by Iran and the United States.

The European Central Bank is expected to raise eurozone rates later in the day to tackle inflation concerns, which have sent global bond yields back to multi-decade highs. However, this has done little to draw safe-haven flows into the dollar.

Despite the oil price shock, the euro held steady near two-week highs ahead of the ECB decision. The single currency is typically sensitive to oil price swings due to Europe's reliance on imported energy, but that relationship has broken down as the war has dragged on.