Saudi Press

Saudi Arabia and the world
Monday, Sep 22, 2025

Euro under pressure as inflation fears send investors to dollar “haven”

Euro under pressure as inflation fears send investors to dollar “haven”

The euro struggled to regain its footing on Thursday after tumbling overnight against a resurgent U.S. dollar, which benefited from safe-haven demand on renewed worries about higher rates and a global recession.
The common currency was at $1.0453, up 0.13% on the day, after losing 0.75% on the dollar the day before. It looked set for a monthly decline of 2.7% and a quarterly loss of 5.5%.
It also dropped to a fresh 7-1/2-year low versus the Swiss franc at 0.9963 francs early in the Asia session on Thursday, with the Alpine currency another beneficiary of safe-haven flows and also still basking in the afterglow of the Swiss National Bank's surprise rate hike two weeks ago.

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 (it), resulting in broad dollar rebound overnight."

A steady and aggressive global switch to tighter policy has stoked recession worries and shaken financial markets in recent months.

Speaking on Wednesday at the European Central Bank's annual conference in Sintra, Portugal, U.S. 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.

Lower German inflation figures also briefly weighed on the euro, said Ray Attrill head of FX strategy at National Australia Bank, before "the market realised that there was some special factors there, it wasn't a genuine downside surprise."

"The bigger picture worry is what happens with energy supplies in the eurozone as we head towards the winter... We're quite cautious about the euro," Attrill added.

The dollar remained on the front foot against other majors, with sterling hunkered down at $1.2132, with losses this week leaving it set for a 3.7% monthly decline, while the Australian dollar was struggling at $0.6895.

The dollar also hit fresh a 24-year peak of 137 yen overnight, as the gap between a hawkish Fed and a dovish Bank of Japan continues to weigh heavily on the yen, which was last trading at 136.51 yen .

The BOJ is able to keep interest rates pinned down because Japanese inflation is still low by global standards, though even small price rises are causing a messaging problem for the central bank.

The dollar has climbed 12% on the yen in the three months to the end of June, its biggest quarterly gain since late 2016.

Bitcoin dipped back below the symbolic $20,000 level on persistent market ructions, and was also hurt by the U.S. Securities and Exchange rejecting a proposal to list a spot bitcoin exchange-traded fund by Grayscale, one of the world's biggest digital asset managers.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
Top AI Researchers Are Heading Back to China as U.S. Struggles to Keep Pace
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
×