The euro dropped on Friday after a tense meeting between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump, which fell apart dramatically, crushing hopes for a quick peace deal in the war with Russia.

During a meeting intended to strengthen Ukraine’s case against U.S. support for Russian President Vladimir Putin who initiated the invasion of Ukraine three years ago, Trump and Zelenskiy engaged in a heated exchange of words.

After the meeting, Zelenskiy departed the White House ahead of schedule, leaving behind an unsigned agreement between Ukraine and the U.S. on the joint development of natural resources.

EUR/USD plunged by 0.29% at $1.0367 after falling to $1.0359, its lowest since February 12.

Following a steady decline over several months from its highest level in over a year reached in September, the euro has begun to show signs of stabilization, driven in part by optimism about a potential peace agreement.

The U.S. dollar dipped slightly on Friday after inflation data aligned with investor expectations, while consumer spending saw an unexpected decline.

The dollar index that gauges the greenback versus its major pairs edged up by 0.23% to 107.61.

Expectations hover around a rate cut of at least 25 basis points in June increased, with market odds rising to 79.1%, up from nearly 70% in the previous session, according to CME’s FedWatch Tool.