Euro hits highest level in 7 days
Inflation data released in the US falling below expectations has strengthened the euro against the dollar.
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In May, annual core inflation in the US came in at 2.8 percent, falling below analysts' forecasts of 2.9 percent. Headline annual inflation rose to 2.4 percent as expected, but the monthly inflation rate remained behind projected levels at 0.1 percent.
Following these developments, the euro gained 0.4 percent against the dollar, reaching 1.1489 dollars and approaching the 1.1494 dollar mark, which is its highest level in six weeks. The dollar index, which was at 99.030 before the data was released, fell 0.4 percent to 98.737.
The inflation data easing concerns regarding the impact of tariffs on prices could increase the likelihood of the US Federal Reserve cutting interest rates. This situation has the potential to reduce the interest rate differential between the US and the Eurozone.