The euro fell in European trading on Thursday against a basket of global currencies, for the first time in the last five days against the US dollar, giving up its five-week high due to correction and profit-taking operations.
Despite this decline, the single European currency remains on its way toward achieving its second consecutive weekly gain, amid improved sentiment in global markets after the United States and Iran agreed on a two-week ceasefire, which includes opening the Strait of Hormuz to global navigation.
Price overview
- Euro exchange rate today: The euro fell against the dollar by 0.1% to ($1.1685), from the opening price of the day at ($1.1697), and recorded a high of ($1.1702).
- The euro ended Thursday's trading up by 0.3% against the dollar, in its fourth consecutive daily gain, and recorded a five-week high at $1.1723, thanks to the agreement between the United States and Iran on a ceasefire.
Weekly trading
Over the course of this week's trading, which officially ends at the settlement of prices today, the single European currency "the Euro" is up so far by 1.5% against the American currency "the Dollar," on the verge of achieving its second consecutive weekly gain, and its largest weekly gain since last January.
Agreement to stop the Iranian war
- The United States and Iran agree on a two-week ceasefire and plan to open the Strait of Hormuz to global navigation.
- U.S. President "Donald Trump" agreed to suspend attacks and aerial bombardment against Iran for 14 days, following intensive Pakistani and Qatari mediation.
- Iran announced its agreement to reopen the Strait of Hormuz to international navigation "fully and safely," with technical coordination with the Iranian armed forces to secure the passage of ships.
- Direct negotiations between Washington and Tehran are scheduled to begin later today in the city of "Islamabad" in Pakistan, in order to reach a final agreement that ensures the total cessation of military operations and the opening of the Strait of Hormuz.
Global oil prices
Global oil prices declined over the course of this week by an average of 12%, on track to incur the largest weekly loss since June 2025, as fears of supply disruptions from the Middle East subsided after the opening of the Strait of Hormuz to giant oil tankers.
European interest rates
- Lagarde, President of the European Central Bank, said: The bank is ready to raise interest rates even if the expected rise in inflation is short-term.
- Data released recently showed that inflation in the eurozone exceeded the European Central Bank's target to reach 2.5% in March with the rise in energy prices.
- Following that data, the money market pricing of the probabilities of the European Central Bank raising European interest rates by about 25 basis points in this April rose from 30% to 35%.
- Sources reported to Reuters that the European Central Bank is likely to begin discussing raising interest rates during the meeting of this month.
- In order to re-price the above probabilities, investors await the release of more economic data in the eurozone regarding the levels of inflation, unemployment, and wages.