Dollar Nears 17-Month Peak as Euro Faces French Financial Pressures

The US dollar strengthened to near a 17-month high on Friday, as traders reacted to diminishing expectations of a Federal Reserve interest rate hike in October following weaker-than-expected US jobs data. Meanwhile, the euro faced pressure due to financial concerns in France, particularly rising debt levels and political uncertainty ahead of next year's elections.

The euro dipped to $1.1246, nearing its lowest point since May 2025 after four straight weeks of losses. The pound sterling rose slightly to $1.3241, while the Japanese yen weakened to 157.69 against the dollar in early Asian trading. The dollar index, tracking the US currency against six major peers, held steady at 101.97.

Global markets remain on edge after last week's bond sell-off, which pushed borrowing costs to multi-decade highs and increased investor concerns over inflation risks from rising oil prices. The yield on 10-year US Treasury bonds eased to 5.262 percent, down from the 24-year peak reached last week.

Other currencies showed mixed movements, with the Swiss franc trading at 0.8286 against the dollar and 0.9312 against the euro after a strong rally last week. The Australian dollar stabilized at $0.6956, while the New Zealand dollar slipped 0.1 percent to $0.5610.