The euro fell against a basket of major currencies in European trading on Wednesday, extending its losses for a second consecutive session against the US dollar as investors sought the greenback as a preferred safe-haven asset amid renewed military tensions between the United States and Iran in the Strait of Hormuz.

The renewed rise in global oil prices has also revived concerns about inflationary pressures on central banks, reinforcing expectations that interest rates could remain higher or increase further in the coming months.

The Price

Euro today: The euro fell 0.1% against the US dollar to $1.1399, down from the session opening level of $1.1412. It recorded an intraday low of $1.1413.

The euro closed Tuesday down 0.25% against the US dollar, its first daily decline in four sessions, as traders continued profit-taking following its rally to a two-week high of $1.1473.

US dollar

The US Dollar Index rose 0.1% on Wednesday, extending gains for a second straight session as the US currency strengthened against a basket of major and minor currencies.

The dollar continued to benefit from safe-haven demand following the renewed military confrontation between the United States and Iran, raising concerns that the ceasefire agreement could collapse and peace negotiations could come to an end.

Later today, markets will closely watch the minutes of the Federal Reserve's first monetary policy meeting under Chairman Kevin Warsh, which are expected to provide fresh clues about the likelihood of further US interest rate hikes this year.

Global oil prices

Oil prices climbed around 0.5% on Wednesday, extending gains for a second consecutive day and reaching their highest level in two weeks amid renewed concerns over potential supply disruptions through the Strait of Hormuz and the risk of further interruptions to maritime traffic.

Iran conflict developments

• The United States launched a large-scale wave of airstrikes targeting more than 80 military sites across Iran, including locations in Bandar Abbas, Sirik, and Qeshm Island in the country's south.

• The strikes came after Iran's Islamic Revolutionary Guard Corps attacked three commercial oil tankers, including a Qatari LNG carrier and another vessel flying the Saudi flag, while they were transiting the Strait of Hormuz.

• Tehran claimed the vessels had failed to follow "Iran-approved shipping routes" and attempted to use lanes closer to Oman to avoid transit fees that Iran has been seeking to impose.

• The US Treasury officially revoked a temporary license that had allowed Iran to produce and export crude oil, describing the maritime attacks as a clear violation of the memorandum of understanding signed on June 17.

• Iran vowed a "decisive and powerful response" to the US strikes, while Foreign Minister Abbas Araghchi said no final negotiations could take place as long as threats and military attacks continued.

• Pakistan had been scheduled to host another round of technical talks between the United States and Iran on July 11 to discuss sanctions relief, the release of frozen assets, and Iran's nuclear program.

• US President Donald Trump reiterated that Washington would either reach a final agreement with Iran or "finish the job" through comprehensive military action.

European interest rates

• European Central Bank President Christine Lagarde said last week at the ECB Forum in Sintra that risks to inflation and economic growth in the euro area have become more balanced than they were a few weeks ago following the recent decline in oil prices.

• Money markets are currently pricing the probability of a 25-basis-point ECB rate hike in July at around 10%.

• Investors will continue monitoring upcoming eurozone data on inflation, employment, and economic growth to reassess the outlook for European monetary policy.

The New Zealand dollar rallied sharply against major global currencies on Wednesday, climbing toward a two-week high against the US dollar after the Reserve Bank of New Zealand delivered its first interest rate increase in three years.

The central bank also signaled that further rate hikes may be necessary, although the timing and magnitude of any additional tightening will depend on incoming economic data, inflation trends, and the strength of economic activity.

The Price

New Zealand dollar today: The New Zealand dollar rose 0.5% against the US dollar to 0.5707, up from the session opening level of 0.5678. The currency touched an intraday low of 0.5673.

The New Zealand dollar closed Tuesday down 0.4% against the US dollar, marking its second consecutive daily decline as investors continued to take profits following its recent rally to a two-week high of 57.27 US cents.

Reserve Bank of New Zealand

The Reserve Bank of New Zealand (RBNZ) raised its official cash rate by 25 basis points to 2.50% on Wednesday, in line with market expectations. The move lifted interest rates to their highest level since October 2025 and marked the first rate hike since May 2023.

RBNZ delivers first rate hike in three years

The decision received unanimous support from all six members of the Monetary Policy Committee as policymakers sought to address inflationary pressures stemming from the impact of the Iran conflict.

The central bank said inflation remains above its target range of 1% to 3%, despite easing short-term price pressures following the recent decline in oil and energy prices. Policymakers added that the effects of the energy shock have not fully dissipated and that medium-term inflation risks remain elevated.

The RBNZ also noted that New Zealand's economy lost some momentum during the second quarter but is expected to resume its recovery in the third quarter as confidence improves and lower fuel prices support activity.

The bank expects inflation to return to its target range within at least one year and reiterated that additional interest rate increases may be required. However, future decisions will depend on incoming economic data, inflation developments, and the strength of economic activity.

New Zealand interest rates

• Following Wednesday's meeting, market pricing for another 25-basis-point rate hike at the September meeting jumped above 90%, with investors now expecting two additional rate increases before the end of the year.

• Investors will closely monitor upcoming New Zealand economic data, including inflation, employment, and GDP figures, to reassess the outlook for monetary policy.

XRP slipped modestly to trade near $1.13 on Tuesday, maintaining its broader downward trend as weakening retail investor interest and the lack of strong bullish catalysts continued to weigh on sentiment. Investors also remained inclined to lock in short-term profits.

European license strengthens Ripple's expansion despite ongoing market pressure

Ripple announced on Monday that it had secured a Crypto-Asset Service Provider (CASP) license from Luxembourg's financial regulator, the Commission de Surveillance du Secteur Financier (CSSF).

The license follows the company's preliminary approval received in June 2026 and confirms Ripple's full compliance with the European Union's Markets in Crypto-Assets (MiCA) regulation.

With the authorization now in place, Ripple's regulated crypto payment solutions are available to financial institutions, businesses, and enterprises across the European Economic Area, which includes 30 countries.

Cassie Craddock, Ripple's Managing Director for the UK and Europe, said: "Obtaining our CASP license marks Ripple's transition beyond the MiCA implementation period. We are now fully compliant with the regulatory framework and well positioned to expand across Europe."

Weak retail participation continues to weigh on XRP

Despite the positive regulatory milestone, XRP's derivatives market continues to reflect weakening retail investor demand, as shown by activity in perpetual futures contracts.

According to CoinGlass data, open interest in XRP perpetual futures declined to $2.38 billion on Tuesday, down from $2.39 billion on Monday and $2.58 billion on Sunday.

Looking at the broader trend, current retail participation remains extremely subdued compared with the peak open interest of $10.94 billion recorded on July 22.

Analysts believe that if this weakness persists, XRP's recovery could remain elusive in the near term, as investor fatigue and weak buying momentum continue to dominate market sentiment.

Corn and soybean futures on the Chicago Board of Trade were little changed on Tuesday after posting strong gains in the previous session, supported by weather concerns and growing expectations of renewed Chinese demand for US agricultural crops, analysts said.

Weather and oil prices support US grain markets

Higher crude oil prices also supported corn and soybean markets following reports of attacks on vessels near the Strait of Hormuz. Both crops are widely used in the production of biofuels.

Wheat prices, however, edged lower after following corn higher on Monday, as market attention shifted toward harvest progress across the Northern Hemisphere, outweighing concerns over deteriorating US wheat crop conditions.

Forecasts for hot and dry weather across parts of the US Midwest, following last weekend’s heatwave, raised concerns about stress on corn crops as they approach the critical pollination stage. The outlook echoed worries about damage to corn crops in Western Europe after an exceptionally hot start to the summer.

Peak Trading Research said in a market note, "Investment funds have been quick to add long positions as they monitor every update to US weather models to assess what comes next."

A report released by the US Department of Agriculture after Monday's market close showed that crop conditions remained generally favorable over the past week.

The share of the US corn crop rated good to excellent remained unchanged at 67%, while the equivalent rating for soybeans slipped by one percentage point to 64%.

Chinese soybean purchases boost trade expectations

Two US traders familiar with the transactions told Reuters that China's state-owned COFCO purchased at least five cargoes, or no less than 300,000 metric tons, of US soybeans on Monday for shipment between September and November.

The reported purchases followed growing speculation that China is renewing its interest in US soybeans as both countries pledged to expand agricultural trade.

Washington has previously stated that China committed to purchasing 25 million metric tons of US soybeans annually, although Beijing has yet to officially confirm that target.

As of 10:55 GMT, the most actively traded soybean contract on the Chicago Board of Trade was up 0.15% at $11.94 per bushel. The contract had earlier touched a one-month low of $11.97¾ per bushel but remained below the key psychological level of $12.00.

Corn futures rose 0.05% to $4.58 per bushel after reaching a one-month high of $4.59½.

Meanwhile, Chicago wheat futures slipped 0.08% to $6.13½ per bushel, easing from the two-week high reached on Monday.

Traders said Saudi Arabia's purchase of 661,000 metric tons of wheat through an international tender on Monday confirmed fresh demand in the market. However, the price reaction remained limited because of low tender prices and expectations that Black Sea supplies will cover most of the shipment.

At 10:55 GMT, Chicago wheat traded at 613.50 cents per bushel, down 0.50 cent or 0.08%. Corn traded at 458.00 cents per bushel, up 0.25 cent or 0.05%, while soybeans traded at 1,194.00 cents per bushel, gaining 1.75 cents or 0.15%.

Paris wheat futures were unchanged at €204.25 per metric ton. Paris corn futures fell 0.63% to €237.75 per metric ton, while rapeseed futures held steady at €512.75 per metric ton.

In energy markets, US West Texas Intermediate crude futures rose $0.76, or 1.11%, to $69.31 per barrel, while the euro slipped 0.07% against the US dollar to $1.14.