The euro remains steady above a two-month low following ECB President Christine Lagarde's statement that inflation is still too high and further policy tightening is necessary.
Inflation in the eurozone decreased to 6.1% in May from 7.0% in April, but remains above the ECB's 2% target. Money markets are predicting a 25 basis points hike in interest rates when the ECB meets on June 15, followed by another hike in July. Meanwhile, the dollar falls from a two-month high as investors reduce bets on a Fed rate hike this month.
The US House has passed a bill to suspend the $31.4 trillion debt ceiling, potentially providing support for the dollar.
