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Euro Drops to 1.1525 as U.S. Strikes Iran, Dollar Safe-Haven Bid Firms

6/4/2026

The EUR/USD pair fell roughly 0.4% to around 1.1525 by mid-morning European trading on Monday after the United States launched self-defense strikes against Iranian targets, confirmed by Pentagon officials.

The pair had been holding near 1.1570 during early Asian hours before the news hit; $FIAT markets repriced fast and broadly, with the dollar firming against the euro, the British pound, and the Japanese yen in tandem.

The move brings one of the most-watched currency pairs in the world back into contested territory near a level traders have circled as critical.

Dollar Absorbs the Geopolitical Shock The price action followed a textbook safe-haven rotation.

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