Dollar set for big rise in September, mainly at euro's expense
TLT•The dollar was up nearly 2.5% against the euro in September and was poised for its largest monthly gain against it in 14 months. The euro traded at $1.1337, near its lowest level since May 2025.
1. Dollar gains against euro
The dollar stood near this year's high against the euro on Wednesday, supported by US growth and rising interest rates as energy and debt concerns weighed on Europe. The euro had dipped to $1.1312 on Tuesday, its lowest since May 2025, and was trading at $1.1337 in Asia.
2. Jobs data in focus
The dollar was also set for a third straight quarterly rise against the euro. Markets were focused on Friday's US jobs report for clues on interest rates, while New York Fed President John Williams said there was “no need for urgency” in raising rates; two-year Treasury yields fell about 3.5 basis points and futures pricing for a rate hike next month fell to 50% from 71%.
3. Other currency moves
The dollar hit a nearly 17-month high against the Swiss franc on Tuesday. It was down 2% against the yen in September and nearly 3.8% for the quarter, while the yuan was headed for its seventh straight quarterly gain against the dollar.
