Francesco Pesole of ING stated in a report that the Federal Reserve's upcoming decision and ongoing U.S.-Iran tensions could extend the current decline in the euro against the U.S. dollar. He noted that markets still tend to buy euros when the exchange rate falls below $1.17, which has become a key benchmark level for foreign exchange investors assessing sentiment regarding the Middle East situation. Pesole indicated that if the Federal Reserve signals a tighter monetary policy, risk appetite remains weak, and there is no progress in reopening the Strait of Hormuz, the euro may break below this level more decisively. The Federal Reserve is set to announce its decision. The euro fell 0.1% to $1.1705.
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