Euro/dollar parity is at its highest level in the past year

The euro continues to increase against the dollar, following the turbulence in the global banking sector in recent times, which has changed the expectations for the interest rate hike cycle in the markets.

The increase in the euro is attributed to the possibility of the US Federal Reserve implementing a less restrictive monetary policy and its impact on the dollar.

In addition, as the turbulence in the global banking sector subsides, the relatively less demand for safe investments such as the dollar in the markets due to the more positive sentiment, strengthens the euro.