The Euro rose in the European market on Monday against a basket of global currencies, resuming gains that briefly paused on Friday against the U.S. dollar. The currency is approaching a multi-week high, benefiting from a slowdown in the greenback as investors assess developments in peace talks between the United States and Iran.

ECB President Christine Lagarde stated last week that the option of raising interest rates was discussed extensively during the recent meeting, noting that the upcoming meeting in June will be the "appropriate time" to re-evaluate the path of monetary policy.

Price Overview

* Euro Exchange Rate Today: The Euro rose against the dollar by approximately 0.25% to ($1.1747), up from Friday's closing price of ($1.1719), recording a session low of ($1.1720).

* The Euro ended Friday's trading down 0.1% against the dollar due to correction and profit-taking, after having reached a near two-week high of $1.1785 earlier in the session.

The U.S. Dollar

The dollar index fell by more than 0.2% on Monday, resuming losses that paused on Friday. This decline reflects a retreat in the U.S. currency against a basket of major and minor currencies.

The decline comes as safe-haven demand for the dollar slows while markets evaluate recent intensive talks between the U.S. and Iran. Official Iranian media reported that the U.S. conveyed its response to a 14-point Iranian proposal through Pakistan. Tehran seeks an end to the U.S. blockade and a postponement of nuclear negotiations, while Washington remains insistent on prioritizing a nuclear deal.

President Donald Trump stated that Washington would begin efforts Monday morning to release ships stranded in the Strait of Hormuz as a humanitarian gesture to assist neutral nations affected by the U.S.-Israeli war with Iran.

European Interest Rates

* In line with expectations, the ECB kept its key interest rates unchanged last week at 2.15%the lowest level since October 2022marking the seventh consecutive meeting without a change.

* President Lagarde noted that the Governing Council reached a unanimous decision to hold, despite a lengthy discussion regarding the "option to hike," and confirmed that June will be the "appropriate time" to reassess monetary policy.

* Following the meeting, money market pricing for a 25-basis-point rate hike by the ECB in June rose from 35% to 55%.

* Investors are now awaiting further Eurozone economic data regarding inflation, unemployment, and wages to further refine these interest rate expectations.