Kayonews-The euro came under renewed pressure against the US dollar on Tuesday, September 29, 2026, as investors assessed the outlook for European interest rates and rising energy prices.
The EUR/USD exchange rate was trading around $1.137 per euro at 9:30 a.m. Jakarta time, according to Refinitiv data. The pair was little changed during the morning session.
On Monday, the euro fell 0.18% to around $1.137. The move brought the European currency close to its weakest level in almost three months.
The euro has faced additional pressure after European Central Bank President Christine Lagarde said the recent rise in inflation should be addressed through a measured policy response.
Eurozone inflation has moved above 3% and could approach 4% by the end of the year. The increase is being driven largely by higher oil and gas prices linked to geopolitical tensions.
However, the ECB has not yet seen clear evidence that higher energy costs are creating a broader wage-driven inflation cycle. This has reduced expectations for an aggressive series of interest rate increases.
Markets are now watching the ECB’s October 29 meeting. Some economists expect the central bank to keep rates unchanged before potentially considering another increase later in the year.
Meanwhile, the US dollar has gained support from higher Treasury yields. The dollar index, or DXY, was around 101.2 and remained close to its highest level in two months.
Investors are now waiting for key US economic data, including the PCE inflation report and employment figures. The releases could provide fresh clues about the Federal Reserve’s next interest-rate decision and determine the direction of the euro-dollar exchange rate. (*)
Editor : Fanda Yosephta
