The euro traded just above $1.15, hovering near its highest level since June 16, as improving risk sentiment followed a sharp decline in oil prices. Crude fell on hopes of a US-Iran agreement to reopen the Strait of Hormuz after President Donald Trump said fresh talks with Tehran would begin on Monday, easing fears of a broader Middle East conflict. The drop in oil prices led money markets to modestly scale back expectations for further European Central Bank tightening, although a rate hike by September remains largely priced in. At the same time, stronger-than-expected eurozone data continued to support the policy outlook. The bloc's economy expanded 0.4% in the second quarter, beating forecasts of 0.2% and marking its fastest growth since early 2025. Meanwhile, annual inflation accelerated to 2.9% in July, while core and services inflation also strengthened.