Dollar set for September rise, mainly at euro's expense
UUP•The dollar was poised to post its largest monthly rise against the euro in 14 months, gaining nearly 2.5% in September as the euro fell to $1.1312 overnight. Investors were watching Friday's U.S. jobs report for clues on interest rates.
1. Dollar gains against euro
The dollar stood near this year's high against the euro on Wednesday, supported by U.S. growth and rising interest rates while energy and debt concerns weighed on Europe. The euro traded at $1.1339 in Asia after touching $1.1312, its lowest since May 2025. The dollar also reached a 16½-month high against the Swiss franc, while it fell 1.5% against the yen in September.
2. Jobs data in focus
Markets were focused on Friday's U.S. jobs report, which, if strong, could reinforce expectations of higher U.S. 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 and futures pricing for a rate hike next month dropped to 50% from 71%.
3. Other currencies move
The Australian dollar traded near $0.6986 after slipping below 70 cents, while the New Zealand dollar was at $0.5638 after touching its lowest since last November. The yuan was heading for its seventh straight quarterly gain against the dollar. French market pressure included a spread over German yields above 115 basis points, its widest since 2012.
