Dollar Rises Sharply Against Euro Amid Strong US Growth

The US dollar has surged in September, reaching its highest level of the year against the euro. The greenback is on track for its biggest monthly gain versus the single currency in 14 months, thanks to stronger growth and rising interest-rate expectations in the US.

The euro has been one of the worst-performing major currencies this year due to Europe's energy and debt concerns. In response, the dollar has gained nearly 2.2 per cent against the euro in September, setting it up for a third consecutive quarterly advance.

The Federal Reserve raised interest rates this month for the first time in three years after data pointed to a resilient US economy and persistent inflation. This move prompted traders to price in a more aggressive path for US monetary policy relative to the euro zone, where growth remains weaker and debt concerns are mounting.