Euro Sinks To One-Year Low As Oil Price Drop Fuels ECB Rate Cut Bets

The euro has sunk to a one-year low, with easing of tensions between the United States and Iran helping to cool oil prices and raise expectations that the European Central Bank will turn more dovish.

The euro was quoted at $1.135 against the U.S. dollar on Wednesday, down from $1.165 before the U.S. and Iran first agreed to a conditional ceasefire on 8th April.

A provisional peace agreement to restore oil flows through the Strait of Hormuz has dramatically cooled global energy markets, with Brent crude for August delivery trading at $74.76 per…