09.03.202601:05:19UTC+00Euro Falls to Over 3-Month Low

The euro fell to about $1.152 on Monday, extending the previous week’s losses and reaching its lowest level in more than three months, as investors moved into the safety of the US dollar amid escalating tensions in the Middle East. The conflict, now in its second week, shows no sign of easing after US President Donald Trump demanded Tehran’s unconditional surrender. Rising oil and gas prices have added to concerns, despite Trump’s pledge to safeguard tankers in the strategic Strait of Hormuz. The jump in energy costs has revived fears about eurozone inflation, which could climb above the European Central Bank’s 2% target if price pressures persist. ECB Executive Board member Isabel Schnabel noted that, although inflation is projected to average 2% over the medium term, the central bank “cannot be complacent.” She emphasized the need to closely track the persistence of energy-price shocks, their impact on inflation expectations, and the extent to which firms pass higher costs on to consumers.