08.09.202607:19:38UTC+00Euro Holds Near $1.16 Ahead of ECB Rate Hike

The euro held steady around $1.16 as investors focused on the European Central Bank’s policy meeting later this week, while climbing oil prices intensified inflation worries. Brent crude rose to a new six-week high amid renewed US–Iran clashes and reports that Iran and Oman were close to an agreement on managing shipping through the Strait of Hormuz, stoking concern over Tehran’s expanding influence over this strategic chokepoint. Persistent inflationary pressures and surprisingly resilient economic growth continue to push central banks to maintain a restrictive policy stance. The ECB is widely expected to raise interest rates on Thursday, and markets have nearly fully priced in another increase before year-end. In the US, investors are awaiting key inflation figures later this week, following a strong jobs report on Friday that pushed the perceived probability of a Federal Reserve rate hike next week to nearly 60%, lending additional support to the dollar.