Dollar Poised for Largest Monthly Rise Against Euro Since 2021

The US dollar is poised for its largest monthly rise against the euro in 14 months, thanks to strong US economic growth and rising interest rates. The dollar has already gained nearly 2.5% against the euro this month and is set to notch a third straight quarterly rise.

Brent Donnelly, president of foreign exchange trading at Spectra Markets, attributed the dollar's strength to the US economy's hot performance, which contrasts with Europe's struggles in the global AI race and concerns over energy supplies and French politics. The euro has also been pressured by debt worries ahead of next year's presidential election.

The dollar's rise against the euro has pushed other currencies lower as well, including the Australian dollar, which slipped below 70 cents for the first time since early August. The Swiss franc has also suffered, hitting a nearly 17-month low against the dollar on Tuesday.