Dollar Surges Against Euro Amid US Rate Hikes
The US dollar is poised for its largest monthly rise against the euro in over a year, reaching near highs since May 2025. The euro has dipped to $1.1312 and trades nearby at $1.1339 in Asia, with Brent Donnelly of Spectra Markets attributing this decline to 'the US economy running hot'.
As the dollar gains momentum against the euro, it's also pushing its Australian counterpart below 70 cents for the first time since early August. The rising greenback is largely driven by higher US interest rates and contrasts with energy and debt worries in Europe.
The euro's struggles are compounded by French markets facing pressure from debt and political gridlock ahead of next year's presidential election, with a spread of 115 basis points to German yields at its widest since 2012.