The Euro declined in the European market on Friday against a basket of global currencies, continuing its losses for the fourth consecutive day against the U.S. dollar. It is approaching its lowest level in nearly two weeks and is on track for its first weekly loss in a month as investors prioritize the American currency as the preferred alternative investment. This shift follows escalating tensions between the United States and Iran in the Strait of Hormuz, where both sides have exchanged control over vessels and tankers.

The current rise in global oil prices is increasing signs of growing inflationary pressures on European Central Bank (ECB) policymakers, reinforcing the probability of European interest rate hikes this year.

Price Overview

- Euro Exchange Rate Today: The Euro fell against the dollar by 0.1% to ($1.1672), from todays opening price of ($1.1683), and recorded a high of ($1.1689).

- The Euro ended Thursday's trading down 0.2% against the dollar, marking its third consecutive daily loss. It touched a nearly two-week low of $1.1670 due to escalating geopolitical tensions in the Middle East.

Weekly Trading

Throughout this week's trading, which officially concludes with price settlements today, the Euro has fallen by approximately 0.8% against the U.S. dollar so far, positioned to incur its first weekly loss in a month.

The U.S. Dollar

The dollar index rose by more than 0.1% on Friday, extending gains for the fourth consecutive session and reflecting the continued ascent of the American currency.

This rise comes as investors focus on buying the U.S. dollar as a safe haven, as the United States and Iran remain at odds over the ceasefire, the blockade, nuclear issues, and control of the Strait. These disputes keep the strategic waterway effectively closed, threatening an energy sector shock that could harm global economies.

Skye Masters, head of markets research at National Australia Bank, noted: "Despite Trump's extension of the ceasefire, tensions remain high with Iran's refusal to reopen the Strait of Hormuz and the continued U.S. naval blockade, increasing the risk of prolonged supply disruptions."

Masters added that extreme economic and trade risks are undervalued, and inflationary pressures will persist until the end of the year.

Iranian War Updates

- Trump: Tehran wants to make a deal, but its leadership is in turmoil.

- Trump: We are in no rush for a deal, but if Iran does not want one, "I will end it militarily."

- Iranian President Masoud Pezeshkian described the U.S. blockade and threats as "main obstacles" to genuine negotiations.

- Pakistan continues its efforts to revive peace talks between the U.S. and Iran in Islamabad.

- Iran seized a new vessel in the Strait of Hormuz, challenging U.S. naval superiority.

Global Oil Prices

Global oil prices rose by more than 0.5% on Friday, maintaining gains for the fifth consecutive day and trading near two-week highs. This follows mounting fears of energy supply disruptions from the Arabian Gulf as the Strait of Hormuz remains closed to tankers. The rise in global oil prices renews concerns over accelerating inflation, which may push central banks to raise interest rates in the near terma sharp shift from pre-war expectations of long-term rate holds or cuts.

European Interest Rates

- With the rise in global oil prices, money market pricing for the probability of the ECB raising European interest rates by 25 basis points in April increased from 20% to 30%.

- ECB President Christine Lagarde stated: The bank is prepared to raise interest rates even if the expected rise in inflation is short-term.

- Sources told Reuters that the ECB is likely to begin discussing interest rate hikes during its meeting this month.