Euro Surges Amid Hopes for Peace in Ukraine

The euro hit a one-week high against the dollar as optimism grew over potential peace talks between Ukraine and Russia. Despite hotter-than-expected U.S. consumer prices, the euro's rally is attributed to relief that a resolution to the war in Ukraine might be near.

The euro climbed to a one-week high against the dollar, buoyed by renewed optimism for a peace agreement between Ukraine and Russia. This optimism overshadowed an unexpected increase in U.S. consumer prices. U.S. President Donald Trump indicated that both Russian and Ukrainian leaders are open to peace talks after recent phone calls.

Trump has initiated directives for U.S. officials to engage in discussions to end the conflict in Ukraine. In response, the euro reached $1.044025, marking its highest point since February 5, and was last noted as 0.33% higher at $1.0417.

The euro's ascent is seen as a relief for Europe given the detrimental effects of the Ukraine conflict. Meanwhile, the Russian rouble rose to a five-month peak against the dollar as markets continued to grapple with high U.S. inflation data and potential prolonged interest rate hikes by the Federal Reserve.

(With inputs from agencies.)