The euro was at $1.044, after losing 0.75% on the dollar the day before, and heading for a monthly decline of 2.7%.
Christopher Wong, senior FX strategist at Maybank, attributed the euro’s fall against the dollar to the market moving away from riskier assets after “central bankers warned of lasting inflation and that they would prioritise combating , resulting in broad dollar rebound overnight.” Speaking at the European Central Bank’s annual conference in Sintra, Portugal, US Federal Reserve Chair Jerome Powell said it was important to bring down inflation, even if it meant economic pain, with similar remarks from ECB President Christine Lagarde.
The dollar was also on the front foot against other majors,with sterling hunkered down at $1.21225, with lossesthis week leaving it set for a 3.8% monthly decline, while the Australian dollar was struggling at $0.6873.