Euro Extends Losses to 4-Week Low Under US Pressure

• The US dollar hits a two-week high against a basket of currencies

• The 10-year US Treasury yield nears the 5% barrier

• The Federal Reserve is on the verge of raising interest rates

• Markets await fresh clues on the path of European interest rates

The euro declined in the European market on Monday against a basket of global currencies, deepening its losses for the third consecutive day against the US dollar to hit a four-week low, weighed down by US pressures tied to the rise of the world's largest currency and climbing long-term Treasury yields ahead of the Federal Reserve meeting.

Reports indicated that the European Central Bank is considering raising interest rates at its upcoming October meeting for the second consecutive time, amid escalating inflationary pressures driven by rising oil and natural gas prices, and worsening geopolitical tensions in the Middle East.

The 10-year US Treasury yield rose today by 0.3%, maintaining gains for the sixth straight session and nearing a three-year high close to the 5% barrier, providing further support to the US dollar exchange rate.

Euro Performance Outlook: We at "FX News Today" expect the euro to continue trading in negative territory against the US dollar, with strong probabilities of setting new multi-week lows. However, if Lagarde's comments turn out to be more hawkish than the markets anticipate, the euro's losses could halt, and it may begin recovering against a basket of global currencies.

United Cooperative Assurance Co. (UCA) announced that the Commercial Court in Riyadh issued a decision accepting a "request to initiate liquidation proceedings" filed by one of the company's creditors, and registered the request with the court for consideration in accordance with relevant legal procedures.