Dollar Strengthens Near 17-Month Peak as Euro Faces French Debt Concerns
The US dollar strengthened near a 17-month high on October 5, 2026, as traders reacted to weakened expectations of a Federal Reserve interest rate hike in October following disappointing US jobs data. Meanwhile, the euro faced pressure due to financial concerns in France, particularly rising debt levels and political uncertainty ahead of next year’s elections.
The euro dropped to $1.1246, nearing its lowest point since May 2025 after four consecutive weeks of losses. Sterling climbed to $1.3241, while the Japanese yen traded at 157.69 against the dollar in early Asian trading. The dollar index, measuring performance against six major currencies, held steady at 101.97 points.
Markets remained on edge after last week’s bond sell-off, which pushed global borrowing costs to multi-decade highs and intensified pressure on French debt. Investors are increasingly worried about inflation risks driven by rising oil prices. The yield on 10-year US Treasury bonds eased slightly to 5.262 percent, down from last week’s 24-year peak.
The Swiss franc stood at 0.8286 against the dollar and 0.9312 against the euro, having risen over 1 percent last week. The Australian dollar stabilized at $0.6956, while the New Zealand dollar dipped 0.1 percent to $0.5610.