Dollar Surges in September, Leaving Euro Lagging
Options traders are buying protection as gas prices jump and French bond spreads widen, with analysts warning the euro could fall further.
- On Wednesday, the US dollar hovered near its yearly highs against the euro, poised for its largest monthly gain in 14 months powered by strong US economic growth and rising interest rates.
- Mounting European energy costs and political debt concerns in France are pressuring the common currency, with benchmark gas prices surging above €80 per megawatt hour and the French-German bond spread exceeding 110 basis points.
- The euro dipped to $1.1312 on Tuesday, its lowest level since May 2025, while losing 2.6% against the US dollar this month alone.
- ECB President Christine Lagarde noted Monday that rising bond yields curb economic expansion, while traders dialled back Federal Reserve rate hike expectations for next month to 42% from 71%.
- Commerzbank analyst Thu Lan Nguyen considers the dollar's current strength "rather fragile," suggesting it appears overstretched, while strategists await upcoming US Personal Consumption Expenditures index data for market direction.
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40 Articles
Dollar surges in September, leaving euro lagging
Sept 30 : The dollar hovered near its highest level of the year against the euro on Wednesday and was on track for its biggest monthly gain versus the single currency in 14 months, buoyed by stronger US growth and rising interest-rate expectations.The euro has been one of the worst-performing major currencies
Alexander Zimovsky: The dollar ends September with the highest increase against the euro in 14 months
The dollar ends September with the highest increase against the euro in 14 monthsThe dollar index is close to an annual high against the euro and ends September with an increase of almost 2.3%, the best monthly result in 14...
Global Market: Euro under pressure from energy shock and political risks
The euro has fallen nearly 2% in September as energy prices, political uncertainty and a stronger dollar weigh on the currency. Concerns over German and French politics, rising borrowing-cost spreads and elevated European gas prices threaten growth. ECB rate expectations offer some support, but markets remain cautious about further euro weakness.
Today, on Wednesday, the dollar remains close to its highest level this year against the euro, heading towards the largest monthly appreciation against the European consolidated currency in 14 months, driven by economic growth in the United States and rising US interest rates in exchange for Europe's energy and debt concerns. During the night, the euro has fallen to the lowest level since May 2025, recorded $1.1312, and was traded nearly $1.1339…
The US dollar is heading towards the highest monthly appreciation of the euro in the last 14 months, while the European currency has fallen to the lowest level in May 2025. Evolution can influence the costs of Romanian imports paid in dollars, but it does not automatically mean the depreciation of the lion or the cost of the products.
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