Euro sharpens decline to three-month trough

Euro fell in European trade against dollar for third straight session, marking three-month lows as haven demand climbs on dollar amid expected divergent policies between US and Europe. 

EUR/USD fell 0.3% to 1.1765, the lowest since April 5, marking highs at 1.1814. 

Euro closed down 0.1% on Friday, the second loss in a row following strong US data.

Euro lost 0.6% last week against dollar, the second weekly decline in three following a faster rate of inflation in the US, which raised chances of tighter US monetary policy. 

The dollar index rose 0.25% on Monday, marking the third daily profit in a row and hitting three-month highs at 93.03. 

Investors are buying up the dollar amid expected earlier US policy tightening soon, and as the Delta coronavirus strain spreads worldwide, raising haven demand. 

Some analysts are now expecting divergent monetary policies across the pond, with the US tightening and the EU clinging to ultraeasy policies.