Dollar set for September rise, mainly at euro's expense

The US dollar is closing out September on the front foot against the euro, according to a Reuters report published on Wednesday. The newswire said the dollar stood near this year's high versus the euro and was poised for its largest monthly rise against the single currency in 14 months, a move it attributed to US growth and rising US interest rates set against energy and debt worries in Europe.

On the numbers cited by Reuters, the euro dipped overnight to its lowest level since May 2025 at $1.1312, before trading nearby at $1.1339 during Asian hours. Across the month as a whole, the dollar was up nearly 2.5% against the euro. The single currency was also described as testing support around 178 yen.

The dollar's strength was not confined to the euro. Reuters noted that the rising greenback pushed the Australian dollar below 70 US cents for the first time since early August, and that the dollar reached a 16-and-a-half-month peak against the Swiss franc overnight at 0.8358 francs. The report suggested the franc has suffered in part because investors have been looking for low-yielding alternatives to the yen to sell in the search for carry, with the yen having fallen out of favour as a short against the dollar following US-Japan yen buying in July.

Positioning in the options market has shifted alongside the spot move. Reuters said the skew in options prices had tipped sharply in recent sessions toward buying protection against further euro declines, while also carrying a note of caution from analyst Sean Callow's counterpart in the piece, Brent Donnelly, who was quoted as saying the dollar probably needs strong US data to make further headway from current levels.

That comment points to the central variable for currency markets in the sessions ahead: incoming US economic data and what it implies for Federal Reserve policy. Separately, FXStreet reported on Wednesday that traders were awaiting US personal consumption expenditures (PCE) inflation figures, the Fed's preferred inflation gauge, and that US Treasury yields had pulled back from multi-year highs. The site linked that pullback to an overnight fall in crude oil prices to a three-week low and to remarks from New York Federal Reserve President John Williams, who said the central bank need not rush its next move. On that report, the dollar eased from a two-month high touched on Tuesday, and USD/JPY traded just below the 157.00 level, down around 0.25% on the day.

The yen remains a particular focus. FXStreet noted that the euro rebounded to around 178.13 against the yen after testing a year-to-date low at 177.35, and referenced market attention on the possibility of official pushback against further yen weakness, including comments from Japanese Finance Minister Satsuki Katayama on Tuesday.

For context, month-end and quarter-end sessions often bring additional flows as funds rebalance portfolios, which can amplify or distort short-term currency moves independently of the macro narrative. Gold, which is quoted in dollars and is sensitive to both the currency and to real yields, tends to be watched closely during periods of dollar strength and shifting rate expectations, though the Reuters report focused on the currency market itself.

None of the figures above should be read as an indication of future direction. Exchange rates quoted here reflect levels reported at the time of publication and change continuously through the trading day.

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This is a news summary for general information only — not financial advice, and nothing here is a recommendation to buy or sell any currency or metal. Exchange rates and gold prices can move sharply around data releases and central-bank decisions, and trading them carries a real risk of loss, which leverage magnifies. Always verify against the original source and do your own research before making a financial decision.