Dollar Surges in September, Leaving Euro Lagging
- The U.S. dollar strengthened in September, advancing nearly 2% against the euro as The Bloomberg Dollar Spot Index rose about 2% this month, nearing multi-month highs on Wednesday.
- Rising Treasury yields, with the two-year benchmark closing in on 5%, bolstered the greenback as markets increased expectations for a Federal Reserve rate hike in October to more than 70%.
- The euro declined 2.6% this month, pressured by persistent energy concerns and political instability in France, where the premium investors demand over German debt exceeded 110 basis points.
- Bank of Nassau 1982 chief economist Win Thin said, "This is broad-based dollar strength on rising yields," while Morgan Stanley analysts expect the greenback to maintain dominance through year-end.
- Investors are tracking the Personal Consumption Expenditures index due Wednesday and nonfarm payrolls on Friday, which serve as critical hurdles for confirming the dollar's momentum in coming weeks.
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The value of the U.S. dollar reached an 18-month high driven by a weak euro, high U.S. Treasury yields, and capital inflows resulting from increased investment in AI infrastructure. Robust growth in the U.S. economy and its status as a net energy exporter are also driving the dollar's strength. However, experts warn that the dollar is currently overbought and that a short-term correction is possible.
In the last year and a half the euro has never been so weak. Since the beginning of 2026 the single currency, yesterday under $1,12, lost about 5%, at the minimum of 17...
The return on euro area bonds again showed divergences
Evening Standard
FTSE outperforms European peers as euro struggles
Political and fiscal concerns in Europe kept bond yields elevated and weighed on the euro.
Euro slides as concerns about French debt mount
Equities traded broadly higher despite the pressure of high bond yields, while oil prices pushed higher. The euro's slide follows an underwhelming 2027 budget plan unveiled last week fanned concerns that French government spending will remain high ahead of next year's presidential elections in which the far-right Marine Le Pen, seen as a fiscal populist, stands a chance of winning. That has rattled bond investors at a time when interest rates -…
Frankfurt (Germany), 5 Oct (EFE).- The euro fell this Monday below $1.12, minimum since May 2025, following the increase in France’s risk premium, the fall in investment confidence and the sharp rise in production prices in the eurozone. The euro was changing around 15.00 [...] The entry The euro falls below $1.12, minimum since May 2025 was first published in HolaNews.
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