The euro slipped to $1.15 as investors shifted into the dollar amid intensifying tensions in the Middle East and stronger-than-expected US producer price data, just ahead of key central bank meetings. On Wednesday, Israel reportedly struck Iran’s Asaluyeh refinery and the South Pars gas field, while Iran’s Revolutionary Guard urged evacuations at oil facilities in Saudi Arabia, the UAE, and Qatar, sharply increasing geopolitical risk. Compounding the euro’s weakness, US producer prices jumped 0.7% in February, more than double the forecast 0.3%, pushing the annual rate to a one-year high of 3.4%.
Attention now turns to this week’s policy decisions from the ECB and the Federal Reserve, with both central banks widely expected to leave interest rates unchanged. ECB President Christine Lagarde is expected to outline measures aimed at shielding the Eurozone from inflationary pressures stemming from the ongoing conflict.
