The West Asian peace rhythm that was shattered in an instant triggered the US Dollar's fury, thus sinking the single European currency.
The single European currency was reported to have fallen to around 1.1460 against the US Dollar when the early Asian trading session began on Monday. This fall reflects investors' great concerns about the future of the peace agreement between the United States and Iran.
Global investors are now choosing to release their holdings of risky assets including the Euro in search of protection. This move indirectly gives a huge advantage to the US Dollar currency, which acts as a safe haven during crises.
The market atmosphere became chaotic after President Donald Trump issued the latest threat via his social media platform to resume military strikes. The aggressive statement was issued while official peace talks were actually taking place in Switzerland.
Trump demanded that Tehran stop their allies in Lebanon from continuing to provoke regional unrest immediately. This situation was further aggravated by the surprise announcement from Iran that it would close the important Strait of Hormuz route again.
European Central Bank Ready to Take Safe Steps
Amidst external pressures, the Euro's series of falls comes as European policymakers are considering further tightening of their monetary policy. European Central Bank committee member Pierre Wunsch hinted that an interest rate hike may be necessary next month.
The drastic step is felt to be necessary to curb the heat of inflation in the Eurozone which is now being detected to be spreading to the non-energy sector. Currently, the European deposit rate is at 2.2
