The euro held above $1.185, its strongest level since summer 2021, supported by broad dollar weakness and the recently finalized EU–India landmark trade agreement. The deal, covering a quarter of global GDP, establishes a free trade zone spanning two billion people after nearly two decades of negotiations. Brussels and New Delhi hope the pact will open new markets amid US tariffs and Chinese export controls, with the EU projecting its exports to India could double by 2032. Markets also focused on the US Federal Reserve, widely expected to keep rates unchanged, while investors watch for guidance on the timing of the next rate cut amid speculation that a more dovish successor to Fed Chair Jerome Powell could be announced this week. Geopolitical and trade tensions added caution, as US President Donald Trump threatened higher tariffs on South Korean goods, following similar warnings to Canada and Europe earlier this month.