11.03.202609:49:12UTC+00Euro Slides to Over Three-Month Low

The euro reversed early gains to fall below $1.16, hitting its weakest level since late November, as ongoing uncertainty surrounding the Middle East conflict and mounting concerns over rising inflation across the eurozone pressured the currency. Oil prices stayed under $90 per barrel after the International Energy Agency proposed an unprecedented release of strategic oil reserves to help counter the sharp rise in energy costs sparked by the Iran conflict. On the monetary policy front, expectations have shifted toward a more hawkish European Central Bank. Markets are increasingly pricing in at least one 25-basis-point rate hike this year, with some participants now contemplating the prospect of two increases. On Tuesday, Christine Lagarde reiterated that the ECB remains committed to taking all necessary measures to keep inflation in check, despite the current surge in energy prices.