US Dollar Strengthens as Euro Nears 17-Month Low on Fiscal Concerns

The US dollar continued its upward trajectory on Tuesday, October 6, 2026, buoyed by rising US Treasury yields. The dollar index reached 102.16, following an 18-month high in the previous session. The euro, meanwhile, remained near a 17-month low at $1.1220 in early Asian trading, after hitting its weakest point since May 2025. This decline extended a 1.2% drop from the prior week, reflecting ongoing political uncertainty and fiscal concerns across the eurozone.

In broader market movements, the dollar gained support from elevated US Treasury yields, which hit multi-decade highs overnight. Against the British pound, the euro was trading at 84.83 pence, having also lost over 1% the previous week. The dollar rose slightly against the yen to 157.92, while sterling dipped 0.02% to $1.3222. The Australian and New Zealand dollars both eased 0.07%, trading at $0.6967 and $0.5596, respectively.