Dollar Holds Near 17-Month High Amid France Debt Fears
The US dollar remained near a 17-month high on October 5, 2026, as traders weighed reduced expectations for a Federal Reserve rate hike against growing fiscal concerns in France. The euro dropped sharply to $1.1161 in Asian trading, its lowest level since May 2025, amid a sell-off in French government bonds and worries about France's debt and political stability.
The dollar's strength persisted despite weaker-than-expected US jobs data, which tempered expectations for near-term Fed tightening. Elevated US Treasury yields and safe-haven demand continued to support the greenback.
Other currencies saw mixed movements. The Swiss franc traded at 0.8286 per dollar and 0.9312 per euro, following a gain of more than 1% the previous week. The Australian dollar held steady at $0.6956, while the New Zealand dollar slipped 0.1% to $0.5610.