Dollar Set for September Surge Amid Euro Woes
The US dollar is poised to rise in September, with its largest monthly gain against the euro in nearly two years. The greenback has surged to near this year's high versus the euro, driven by strong US economic growth and rising interest rates.
Brent Donnelly, president of foreign exchange trading at Spectra Markets, attributed the dollar's strength to the 'US economy running hot' and Europe facing challenges such as energy supplies and French politics. He noted that the spread between German and French yields has widened significantly since 2012, and benchmark European gas prices have spiked to their highest levels since 2022.
The euro has dipped to its lowest level in over a year at $1.1312 and is testing support around 178 yen. The dollar's rise has also pushed the Australian currency below 70 cents for the first time since early August, while the New Zealand dollar hit its lowest point since last November.