SINGAPORE: The US dollar remained near its 2026 high against the euro on Wednesday and was on track for its biggest monthly gain against the European currency in 14 months, supported by stronger US economic growth and rising interest rates.
The euro fell overnight to $1.1312, its lowest level since May 2025, before recovering slightly to around $1.1339 in Asian trading. The dollar has gained nearly 2.5% against the euro during September.
Market concerns over Europe’s energy supplies, debt levels and political uncertainty have weighed on the euro. European gas prices earlier this month reached their highest level since 2022, while pressure on French markets has increased amid concerns over government finances and political gridlock.
The yield spread between French and German bonds has also widened to more than 115 basis points, its highest level since 2012, adding to pressure on the euro.
Analysts said the dollar’s recent strength has been supported by expectations of resilient US economic growth and higher US interest rates compared with Europe. However, further gains could depend on upcoming US economic data.
The stronger dollar also pushed the Australian dollar below 70 US cents for the first time since early August. Meanwhile, the dollar climbed to a 16-and-a-half-month high of 0.835
