The euro fell in European trading on Thursday against a basket of global currencies, giving up its five-week high against the US dollar due to correction and profit-taking operations, as the American currency recovered from low levels amid growing investor concerns regarding the fragility of the ceasefire agreement between the United States and Iran.

With eurozone inflation exceeding the European Central Banks medium-term target due to rising energy prices, the probabilities of raising European interest rates at least once this year increased, pending the release of more crucial economic data in Europe.

Price overview

* Euro exchange rate today: the euro fell against the dollar by 0.1% to ($1.1650), from the opening price of the day at ($1.1662), and recorded the highest level at ($1.1665).

* The euro ended Wednesdays trading up by 0.6% against the dollar, in the third consecutive daily gain, and recorded a five-week high at $1.1722, after the United States and Iran agreed on a two-week ceasefire, which includes opening the Strait of Hormuz to global navigation.

US dollar

The dollar index rose on Thursday by about 0.2%, to begin recovering from a four-week low at 98.53 points, reflecting a recovery in the levels of the American currency against a basket of global currencies.

Investors cautiously and anxiously assessed the resilience of the fragile ceasefire, which began yesterday, Wednesday, and lasts for two weeks between the United States and Iran, in light of escalating regional tensions, especially after Israel launched violent military attacks on Lebanon, which angered Iranian authorities and increased uncertainty in the markets.

Sho Suzuki, market analyst at Matsui Securities, said: Some doubts may have begun to appear about the sustainability of the ceasefire expectations, or even the possibility of concluding a final ceasefire at all.

Iran war updates

* U.S. Vice President JD Vance describes the ceasefire with Iran as a "fragile truce" and says that Trump is "eager to make progress."

* The Speaker of the Iranian Parliament states that the United States violated the ceasefire agreement.

* The ceasefire agreement fails to stop the fighting between Israel and Hezbollah, and Israeli strikes result in the death of 254 people in Lebanon.

* Iran says that peace talks will be "illogical" in the wake of the Israeli strikes on Lebanon.

* Washington confirms that the situation in Lebanon is outside the framework of the ceasefire agreement, while Tehran insists that it is one of the fundamental clauses.

* The United States and Iran prepare for talks in Pakistan amid disputes between the two countries over the terms of the nuclear program.

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.