The euro rose in European markets on Thursday against a basket of global currencies, maintaining its gains for the fourth consecutive day against the US dollar, trading near its highest levels in two weeks, benefiting from the continued strength of the US currency ahead of key US inflation data.
This rise comes ahead of the European Central Bank's monetary policy decisions later today, amid expectations that European interest rates will be raised for the second time this year, reaching their highest levels since March 2025, as inflationary pressures continue to be driven by rising energy prices.
Price overview
Euro exchange rate today: The euro rose against the dollar by about 0.1% to ($1.1642), from today’s opening price of ($1.1633), and recorded a low of ($1.1629).
The euro ended Wednesday's trading session up 0.1% against the dollar, its third consecutive daily gain, and hit a two-week high of $1.1654, based on hopes of narrowing interest rate differentials between Europe and the United States.
US dollar
The dollar index fell on Thursday, extending its losses for the fourth consecutive session and nearing its lowest level in three weeks, reflecting the continued decline of the US currency against a basket of global currencies.
The yield on 10-year US Treasury bonds fell 0.25% on Thursday, giving up its highest level in three years, which puts further downward pressure on the US dollar exchange rate.
The U.S. Treasury Department announced Wednesday that it plans to repurchase up to $6 billion in long-term debt starting Thursday, in a move aimed at managing the debt structure and improving liquidity conditions in the markets. The department had previously announced that the repurchase would be at least $4 billion per transaction.
Key inflation data in the United States will be released on Thursday and Friday, which are expected to provide crucial clues about the likelihood of the Federal Reserve raising US interest rates this September.
European Central Bank
The European Central Bank concludes its sixth regular monetary policy meeting of 2026 later today, amid full expectations of an interest rate hike, for the second time this year, following the first hike last June.
The monetary policy statement and Lagarde's comments are expected to provide further clues and clarifications about the future path of interest rates during the remainder of this year.
Expectations are currently stable in global financial markets regarding the European Central Bank raising European interest rates by about 25 basis points from 2.40% to 2.65%, the highest level since March 2025.
The European interest rate decision and monetary policy statement will be released by 12:15 GMT, and European Central Bank President Christine Lagarde will speak at the press conference by 12:45 GMT.
Euro Outlook: Here at FX News Today, we predict that if the European Central Bank's comments are more aggressive than expected by the markets, the likelihood of a third European interest rate hike this year will increase, leading to a widening of the euro's exchange rate gains against a basket of global currencies.
