Dollar near 17-month high as euro drops on French fiscal fears
The US dollar maintained its strength near a 17-month high on Monday, as investors weighed mixed signals from the Federal Reserve against growing fiscal concerns in France. The euro dropped sharply to $1.1161 in Asian trading, marking its lowest level since May 2025, due to a sell-off in French government bonds and rising worries about France's debt and political stability.
The dollar's resilience persisted despite weaker-than-expected US jobs data, which had initially tempered expectations for a near-term interest rate hike by the Federal Reserve. However, elevated US Treasury yields and increased demand for the dollar as a safe-haven asset continued to support the currency.
Other currencies showed mixed movements. The Swiss franc stood at 0.8286 per dollar and 0.9312 per euro, after gaining over 1% last week. The Australian dollar remained steady at $0.6956, while the New Zealand dollar dipped slightly by 0.1% to $0.5610.