The euro slipped to a two-month low against the dollar at $1.1409, extending losses for a third consecutive day after the Federal Reserve's interest-rate increase. Options traders have intensified bearish bets on further euro weakness, with positioning near mid-August levels as markets price in additional Fed tightening. High energy prices and political uncertainty in France and Germany add downside pressure.

Following the Fed meeting, around 60% of euro-bearish exposure has been positioned, up from near-even splits after the ECB's rate hike. ECB Governing Council member Joachim Nagel indicated rates may need to rise further if energy costs persist. Analysts like Elias Haddad of Brown Brothers Harriman argue the US growth advantage supports the dollar, while Deutsche Bank expects the euro to remain range-bound due to resilient global growth and dollar tail risks.