31.03.202607:24:27UTC+00Euro Drops Over 2% in March as Middle East Tensions Weigh

The euro ended March below $1.15, approaching its lowest level in nearly two weeks, after a turbulent month dominated by mounting tensions in the Middle East. The common currency fell more than 2% against the dollar as markets weighed the economic fallout of the intensifying conflict. Uncertainty deepened after a Wall Street Journal report indicated that former US President Donald Trump had signaled a willingness to wind down the US military campaign against Iran even if the strategically crucial Strait of Hormuz remained largely blocked. Surging oil prices stoked inflation across Europe, forcing markets to sharply reassess their expectations for European Central Bank policy. Investors now foresee at least two interest rate hikes in 2026, abandoning earlier projections that had assigned a 40% probability to a rate cut. While French central bank governor François Villeroy de Galhau reiterated the ECB’s determination to contain energy-driven inflation, he warned that it was still “too early” to pinpoint the timing of any policy move.