Dollar steadies near 17-month high amid eurozone fiscal fears
The US dollar remained close to its 17-month peak on Monday, as investors balanced the diminishing likelihood of a Federal Reserve rate hike this month with rising fiscal worries in France. The euro dropped to $1.1161 during Asian trading, its lowest point since May 2025, as concerns over French government debt and political instability sparked fears of financial strain spreading across the eurozone.
The dollar's strength persisted despite weaker-than-anticipated US jobs data, which had reduced expectations of immediate Fed rate increases. However, high US Treasury yields and the greenback's status as a safe-haven asset continued to support its value.
The Swiss franc was trading at 0.8286 per dollar and 0.9312 per euro, following a gain of over 1% last week. The Australian dollar held steady at $0.6956, while the New Zealand dollar declined by 0.1% to $0.5610.