The euro rose in European trading on Friday against a basket of global currencies, extending its recovery for a second consecutive session from a 13-month low against the US dollar, supported by bargain buying and a softer US currency following mixed comments from Federal Reserve officials.

Latest economic estimates suggest that lower oil prices are helping ease inflationary pressures on policymakers at the European Central Bank, reducing the likelihood of another European interest rate increase later this year.

The Price

Euro exchange rate today: The euro rose around 0.1% against the US dollar to $1.1377, up from an opening level of $1.1369, after touching an intraday low of $1.1354.

The euro ended Thursdays session up 0.1% against the dollar, its first gain in four sessions, after hitting a 13-month low of $1.1325 the previous day.

Weekly performance

So far this week, which officially concludes with todays settlement, the single European currency is down around 0.8% against the US dollar and is on track to post a second consecutive weekly loss due to the Federal Reserves hawkish outlook.

US dollar

The US Dollar Index fell around 0.1% on Friday, extending losses for a second straight session and moving further away from a 13-month high, reflecting continued easing in the greenback against a basket of major currencies.

In addition to ongoing profit-taking, the dollar weakened after US inflation data came in line with expectations, while Federal Reserve officials delivered mixed signals regarding the path of monetary policy this year.

Chicago Federal Reserve President Austin Goolsbee said there is a glimmer of hope regarding services inflation, though underlying price pressures remain too elevated and are moving in the wrong direction.

Meanwhile, New York Federal Reserve President John Williams said inflation remains too high and that interest rate policy is well positioned to reduce price pressures.

Global oil prices

Global oil prices fell more than 1.5% on Friday, resuming losses that were temporarily halted in the previous session, and are on track to test four-month lows amid expectations of smoother crude flows through the Strait of Hormuz.

Lower oil prices help ease 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: The European Central Bank is considering pausing monetary policy normalization in July if energy prices remain at current levels.

Money markets currently price the probability of a 25-basis-point ECB rate hike in July at around 30%.

Investors are awaiting additional eurozone data on inflation, unemployment, and wage growth to reassess those expectations.