The currency stayed near its highest level since June 16 as lower crude prices improved risk sentiment, while eurozone growth and inflation data continued to support expectations for a September rate hike.
The euro traded just above $1.15, remaining close to its highest level since June 16 as risk appetite improved after oil prices fell sharply. Crude declined on hopes of a US-Iran agreement to reopen the Strait of Hormuz after President Donald Trump said fresh talks with Tehran would begin on Monday, reducing concerns about a wider Middle East conflict. Lower energy prices prompted money markets to modestly trim expectations for additional European Central Bank tightening, though a rate increase by September remains largely priced in. At the same time, stronger-than-expected eurozone data reinforced the policy backdrop, with the economy growing 0.4% in the second quarter versus forecasts of 0.2%, its fastest pace since early 2025. Annual inflation rose to 2.9% in July, while core and services inflation also strengthened.