The euro rose today and exceeded $1.16, the maximum two months, as it lowered expectations that the US Federal Reserve (Fed) would rise interest rates in September.
© Lusa
17/08/2026
by
Lusa
ANDthis maximum happens on the day the memorandum of understanding expires for a definitive ceasefire signed between the US and Iran.
At 8:50 a.m., the euro was being negotiated at $1,1608, against $1,1579 in the last session.
Last week, new weak economic data from the US reinforced expectations that the Fed will not increase interest rates in September.
Retail sales fell by 0.6% in July — the largest monthly drop since May last year — which can signal a slowdown in consumer spending.
Moreover, inflationary pressures have decreased and the labour market is no longer generating so many jobs.
For this reason, the Fed — which publishes the minutes of its last monetary policy meeting on Wednesday — can maintain interest rates in the range of 3.50% to 3.75% in September.
However, markets anticipate that the European Central Bank (ECB) will increase its interest rates on bank deposits — currently 2.25% — in September.
Yet the war in the Middle East and the fears of inflation driven by rising oil prices — resulting from the continued blockade of the Ormuz Strait — are limiting the losses of the dollar.