Dollar near this year’s high versus euro

On Tuesday the euro slipped to its lowest since May 2025, at $1.1312

The dollar stood near this year’s high versus the euro on Wednesday and was ​poised for the largest monthly rise against it in 14 months, powered by US growth and rising interest rates in contrast to the energy and debt worries in Europe.

On Tuesday the euro slipped to its lowest since May 2025, at $1.1312, and it traded nearby at $1.1339 in Asia on Wednesday. The euro is also testing support near 178 yen.

The dollar is up around 2.5% on the euro ​in September and it is set to notch a third straight quarterly rise.

The stronger dollar has also pushed the Australian ​dollar below 70 cents for the first time since early August, with the Aussie sliding to a ⁠nine-week low of $0.6959 after inflation data came in a fraction under forecasts.

The US economy is running hot, Europe is losing the global ​AI race, and energy supplies and French politics remain big concerns for the euro, said Brent Donnelly, president of foreign exchange trading ​at analytics firm Spectra Markets.

Earlier this month benchmark European gas prices spiked to their highest since 2022.

French markets are under pressure from debt and political gridlock, ahead of next year’s presidential election, and the spread with German yields has risen beyond 115 basis points to its widest since 2012.

A skew ​in options prices has tipped sharply in recent sessions to show traders favour buying protection against further euro falls — though Donnelly says ​the dollar probably needs strong US data to make headway from here.

The dollar also hit a 16-1/2-month top on the Swiss franc on Tuesday ‌at 0.8358 ⁠francs. The franc has suffered, in part, because investors have gone looking for low-yielding alternatives to yen to sell in search of carry elsewhere.