0854 GMT - The euro could turn higher against the dollar as U.S. interest-rate rise expectations look overdone, ING's Francesco Pesole says in a note. The market expects the Federal Reserve to raise rates by October whereas ING expects no tightening and therefore a weaker dollar in the third and fourth quarters. The euro's recent decline versus the dollar comes even as oil prices ease on the U.S.-Iran interim peace deal. "We are in an environment of rapidly shifting correlations, with oil prices becoming an almost irrelevant driver and Fed rate expectations aggressively taking over," Pesole says. The euro earlier reached a three-month low of $1.1416 and last trades at $1.1461, according to LSEG. ING expects it to reach $1.18 by year-end. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
June 19, 2026 04:54 ET (08:54 GMT)
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