Dollar set for September rise, 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 as US growth and interest rates contrasted with concerns in Europe. The euro touched $1.1312, its lowest since May 2025.
1. Dollar gains on euro
The dollar traded near this year's high against the euro on Wednesday and was set for its largest monthly gain against the single currency in 14 months. The euro fell overnight to $1.1312, its lowest since May 2025, and traded near $1.1339 in Asia. The dollar also pushed the Australian dollar below 70 U.S. cents for the first time since early August.
2. Markets watch US data
Investors were focused on Friday's U.S. jobs report, which, if strong, could reinforce expectations of rising interest rates. U.S. core PCE inflation data was due Wednesday. After 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 declined to 50% from 71%.
3. Other currencies move
The dollar reached a 16-and-a-half-month high against the Swiss franc, while it fell 1.5% against the yen in September. The yuan was headed for its seventh straight quarterly gain against the dollar. Australia's dollar traded around $0.6986, while the New Zealand dollar was at $0.5638.
