Euro Depreciates Near 1.1400 as Iran Tensions Fuel Risk Aversion

The euro traded modestly lower against the US dollar on Monday, with the EUR/USD pair hovering near the 1.1400 handle. The decline was driven by heightened geopolitical risk following an escalation in tensions between the United States and Iran, alongside the closure of the Strait of Hormuz.

Risk-averse conditions weighed on the common currency, while the developments also stoked inflation concerns at the start of the trading week. The euro's depreciation reflects broader market caution as traders assess the potential economic impact of the disruption.