The euro fell in European trading on Monday against a basket of global currencies, resuming losses that paused on Friday against the US dollar. The single currency is moving back toward its lowest level in three months as investors continue to favor the US dollar as the most attractive available investment, particularly after the Federal Reserve's hawkish policy meeting, which significantly strengthened expectations for a US interest rate hike in December.

After the European Central Bank reiterated at its latest meeting that it is not committed to a predetermined path for monetary policy or interest rates, investors are awaiting further key economic data from the euro area to reassess expectations for European interest rates.

The Price

Euro exchange rate today: The euro fell 0.1% against the dollar to $1.1453, from an opening level of $1.1465. The session high was recorded at $1.1474.

The euro ended Friday up 0.1% against the dollar, its first gain in three sessions, after earlier touching a three-month low of $1.1418.

The euro lost 0.9% against the dollar last week, marking its second weekly decline in the past three weeks, following the Federal Reserve's hawkish meeting under new Chairman Kevin Warsh.

US dollar

The US Dollar Index rose 0.15% on Monday, resuming gains that paused on Friday and moving back toward a 13-month high, reflecting continued strength in the US currency against a basket of major and minor currencies.

The advance is being driven by demand for the dollar as the most attractive available investment, especially after the Federal Reserve's latest meeting, which was more hawkish than markets had anticipated and significantly boosted expectations for at least one US interest rate increase this year.

This has outweighed the negative impact of fading safe-haven demand following the conclusion of the first round of US-Iran negotiations in Switzerland, which resulted in a 60-day roadmap aimed at reaching a final agreement between the two sides.

US-Iran negotiations

The first round of US-Iran negotiations in Switzerland concluded in what was described as a "positive and constructive" atmosphere despite the tensions and mutual threats that preceded the talks.

The high-level discussions ended early Monday, with technical meetings scheduled to resume later this week.

Mediators, Qatar and Pakistan, announced that both sides had agreed on a roadmap to reach a final agreement within 60 days, marking the most significant diplomatic progress in months.

The parties also agreed to establish a high-level committee to oversee future negotiations, along with a permanent communication mechanism aimed at preventing further escalation.

European interest rates

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

Money market pricing for a 25-basis-point ECB rate hike in July currently remains stable at around 30%.

Investors are awaiting additional economic data from the euro area, particularly inflation, unemployment, and wage figures, to reassess the above expectations.