Euro Falls to Lowest Since Mid-August Ahead of Expected Fed Rate Hike

The euro fell to its lowest level since mid-August against the dollar on Wednesday, September 16, 2026 (25 Shahrivar 1405), trading around $1.1548, up 0.04 percent on the day but down 0.28 percent over the past month and 2.34 percent over the past year. According to Trading Economics, the dollar firmed ahead of a widely expected Federal Reserve rate hike on Wednesday, while rising global oil prices, driven by the intensifying war in the Persian Gulf, added further pressure on the euro. The European Central Bank raised rates last week and signaled further tightening could follow. Trading Economics forecasts the euro at $1.16 by the end of this quarter and $1.18 in 12 months.