Dollar set for large rise in September, mainly at euro's expense
SPY•The dollar was poised for its largest monthly rise against the euro in 14 months, gaining nearly 2.5% in September. US growth and rising interest rates contrasted with concerns over European energy supplies and debt.
1. Dollar gains on euro
The dollar stood near this year's high against the euro on Wednesday, after the euro fell to $1.1312 on Tuesday, its lowest level since May 2025. It traded at $1.1339 in Asia, and the dollar was set for a third straight quarterly rise against the euro.
2. Jobs data in focus
Markets were focused on Friday's US jobs report for signs that could reinforce expectations of rising US interest rates. 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, while futures pricing for a rate hike next month declined to 50% from 71%. The dollar also reached a 16-and-a-half-month high against the Swiss franc, while the yuan was headed for its seventh straight quarterly gain against the dollar.
