The euro fell in European trading on Wednesday against a basket of global currencies, extending its losses for a third consecutive session against the US dollar and hitting its lowest level in a year, as investors continued to favor the greenback as the most attractive currency and alternative investment in the foreign exchange market.

With global oil prices declining, inflationary pressures on European Central Bank policymakers are easing, reducing the likelihood of another ECB interest rate hike later this year.

The Price

Euro exchange rate today: The euro fell about 0.2% against the dollar to $1.1361, its lowest level since June 2025, from an opening level of $1.1381. The session high was recorded at $1.1384.

The euro ended Tuesday down 0.4% against the dollar, marking a second consecutive daily decline following the release of strong US economic data.

US dollar

The US Dollar Index rose more than 0.1% on Wednesday, extending gains for a third straight session and reaching a 13-month high of 101.51 points, reflecting continued strength in the US currency against a basket of global peers.

The advance is being driven by demand for the dollar as the most attractive available investment amid a steady stream of strong US economic data, which supports the Federal Reserve's inclination toward higher interest rates.

The dollar is also benefiting as an alternative safe-haven investment amid the ongoing selloff in global technology stocks.

Global oil prices

Global oil prices fell nearly 1% on Wednesday, deepening losses for a third consecutive session and touching their lowest levels in three months amid expectations of smoother crude flows through the Strait of Hormuz.

Lower oil prices help reduce concerns about accelerating inflation, reinforcing the case for the European Central Bank to leave monetary policy settings unchanged for an extended period this year.

European interest rates

Reports suggest that the European Central Bank is considering pausing monetary policy normalization in July if energy prices remain at current levels.

Money market pricing for a 25-basis-point ECB rate hike in July remains stable at around 30%.

To reassess those expectations, investors are awaiting additional eurozone economic data, particularly inflation, unemployment, and wage figures.