Dollar Set for Biggest Monthly Gain Against Euro in Nearly Two Years

The US dollar is on track to post its largest monthly gain against the euro in nearly two years, driven by strong economic growth and rising interest rates in the United States.

According to data from Reuters, the dollar has risen by over 2.5% against the euro in September, with the euro trading at a low of $1.1312 on Tuesday, its lowest level since May 2025.

Brent Donnelly, president of foreign exchange trading at Spectra Markets, attributed the dollar's strength to the US economy running hot and Europe facing concerns over energy supplies and French politics.

The dollar has also gained against other major currencies, including the Swiss franc, which hit a 16-1/2-month high on Tuesday, and the yen, which fell out of favor as a short against the dollar following US-Japan yen buying in July and August.