Dollar Strengthens Against Euro Amid Resilient US Growth

The US dollar has reached its strongest level of the year against the euro and is on track for its biggest monthly gain in 14 months, driven by resilient US economic growth and higher interest rate expectations.

The euro has been among the worst-performing G10 currencies this year, weighed down by concerns over energy and debt in Europe. In trading, the euro edged higher to $1.135 but remained close to its lowest level since May 2025.

Markets have priced in a more aggressive path for US monetary policy than in the eurozone, where growth remains weaker and debt concerns are mounting. The main drivers for the euro remain the monetary policy outlooks of both the Federal Reserve and the European Central Bank.