LONDON—The euro steadied on Thursday near a two-month low after data showed eurozone inflation eased more than expected last month, backing arguments for only cautious further rate hikes by the European Central Bank (ECB).
Inflation in the 20 nations sharing the euro eased to 6.1 percent in May from 7.0 percent in April, below expectations for 6.3 percent in a Reuters poll of economists.
The euro flattened at $1.0690, towards a two-month low of $1.0635 touched on Wednesday, as the ECB could be under less pressure to extend its monetary tightening much further with inflation showing signs of subsiding.
The ECB has raised base rates by a combined 375 basis points to 3.25 percent over the past year to combat runaway prices….