Dollar Surges Against Euro Amid Strong US Growth
The US dollar has gained significant ground against the euro in September, and it's poised to notch its largest monthly rise in 14 months. The strong greenback is being driven by robust US growth and rising interest rates, which contrast with the economic concerns facing Europe.
The euro dipped to a low of $1.1312 on Tuesday, its lowest level since May 2025, and it's trading nearby at $1.1339 in Asia today. The dollar has gained nearly 2.5% against the euro this month, making it set for a third consecutive quarterly rise.
The stronger dollar is also having an impact on other currencies, with the Australian dollar falling below 70 cents for the first time since early August. Meanwhile, the yen has lost favor as a safe-haven asset due to US-Japan yen buying in July and August, as well as a pickup in Japanese interest rates.
The dollar has reached a 16-1/2-month high against the Swiss franc at 0.8358 francs on Tuesday, while the yuan is set to post its seventh consecutive quarterly gain against the dollar before the Chinese holiday.