This peak comes on the day the memorandum of understanding for a definitive ceasefire signed between the US and Iran expires.

At 8:50am Lisbon time, the euro was trading at $1.1608, up from $1.1579 in the previous session.

Last week, weak new US economic data reinforced expectations that the Fed will not raise interest rates in September.

Retail sales fell 0.6% in July, the largest monthly drop since May of last year, which could signal a slowdown in consumer spending.

Furthermore, inflationary pressures have eased, and the labour market is no longer generating as many jobs.

For this reason, the Fed, which releases the minutes of its latest monetary policy meeting on Wednesday, may keep interest rates in the 3.50% to 3.75% range in September.

However, markets anticipate that the European Central Bank (ECB) will raise its bank deposit rates, currently at 2.25%, in September.

Even so, the war in the Middle East and inflation fears driven by rising oil prices from the ongoing blockade of the Strait of Hormuz are limiting the dollar’s losses.