Dollar hits 17-month high as euro and sterling sit near 2025 lows
In short
The US dollar headed for a third consecutive weekly gain on Friday and stood at a 17-month high, with WAM putting the dollar index at 102.08, up about 1% for the week. The euro was at $1.1237, near its lowest since May 2025, while sterling and the Australian dollar hovered around three-month lows. Emirates 24|7 attributed the euro’s weakness to concerns over French fiscal health and a global bond selloff that pushed 10-year US Treasury yields to their highest since 2002.
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The US dollar headed for a third straight week of gains on Friday, perched at a 17-month high, according to WAM and a matching report published by Aletihad. WAM put the dollar index, which measures the US currency against six rivals, at 102.08, set for a 1% gain this week and its third consecutive weekly rise, a run it last had in May 2025. Emirates 24|7 also reported a third straight weekly gain and a roughly 1% weekly rise, but put the index at 101.93. [ 1 , 2 , 3 ]
The euro was at $1.1237, hugging its lowest level since May 2025, all three documents said. Emirates 24|7 reported that the euro was kept near that low by a bond market selloff driven by inflationary fears over higher oil prices and by concerns over French fiscal health. It cited Moh Siong Sim, a currency strategist at OCBC in Singapore, who said the initial move higher in yields came from rising energy prices but was overshadowed by European fiscal risk concerns, and that the underperformance of French and Italian government bonds pointed to “a flight into the most liquid and defensive sovereign markets”. [ 1 , 2 , 3 ]
In Japan, WAM and Aletihad reported the yen was steady at 158 per US dollar after data showed annual core inflation in Tokyo accelerated in September at the fastest pace in 10 months. Emirates 24|7 reported the yen firmed slightly to 157.84 per dollar after the same inflation data. [ 1 , 2 , 3 ]
Sterling was at $1.3187 and the Australian dollar was 0.18% softer at $0.6918, both around three-month lows, according to WAM and Aletihad. They reported the New Zealand dollar slipped 0.22% to $0.5591, its lowest since November 2025, while Emirates 24|7 said the New Zealand dollar was 0.14% firmer at $0.5614 after hitting its lowest level. [ 1 , 2 , 3 ]
Emirates 24|7 also reported that a steep global bond selloff on Thursday sent yields on benchmark 10-year US Treasuries to 5.344%, their highest since 2002, before bargain hunters helped stabilise the market. The 10-year yield was last at 5.247% on Friday, it said, with traders braced for US jobs data that could influence the near-term policy outlook after a soft inflation report dented October rate hike bets. It reported the Swiss franc was 0.17% firmer at 0.8293 per dollar. [ 3 ]
Why it matters
The dollar’s rise is reported as coming largely at the expense of European currencies, with Emirates 24|7 citing a strategist who described a flight into the most liquid sovereign markets. A bond selloff and inflationary concerns over higher oil prices are presented as the backdrop, which affects borrowing costs and currency values well beyond the region. The Emirati outlets carried the story as global market data rather than domestic news.
Key facts
- The dollar index was at 102.08, set for a 1% gain this week and a third straight weekly rise, a run last seen in May 2025, according to WAM [ 1 , 2 ]
- Emirates 24|7 also reported a third consecutive weekly gain but put the dollar index at 101.93 [ 3 ]
- The euro was at $1.1237, near its lowest level since May 2025 [ 1 , 2 , 3 ]
- The yen was steady at 158 per US dollar after Tokyo core inflation accelerated in September at the fastest pace in 10 months [ 1 , 2 ]
- Sterling was at $1.3187 and the Australian dollar was 0.18% softer at $0.6918, both around three-month lows [ 1 , 2 ]
- The New Zealand dollar slipped 0.22% to $0.5591, its lowest since November 2025 [ 1 , 2 ]
- A bond selloff on Thursday sent the 10-year US Treasury yield to 5.344%, its highest since 2002, before steadying at 5.247% on Friday [ 3 ]
- Moh Siong Sim, a currency strategist at OCBC in Singapore, said dollar strength was mostly skewed towards European currencies and reflected a flight into the most liquid sovereign markets [ 3 ]
Confirmed by several sources
- The dollar was heading for a third straight week of gains, up about 1% on the week, its longest run since May 2025 [ 1 , 2 , 3 ]
- The euro was at $1.1237, close to its lowest level since May 2025 [ 1 , 2 , 3 ]
- The yen traded around 158 per US dollar after Tokyo core inflation accelerated in September at the fastest pace in 10 months [ 1 , 2 , 3 ]
Still unclear
- The exact level of the dollar index WAM and Aletihad reported 102.08 while Emirates 24|7 reported 101.93 for the same day.
- The yen’s direction WAM and Aletihad described the yen as steady at 158 per dollar, while Emirates 24|7 said it firmed to 157.84.
- The New Zealand dollar’s direction and level WAM and Aletihad said it slipped 0.22% to $0.5591, while Emirates 24|7 said it was 0.14% firmer at $0.5614.
- What is driving the dollar’s strength Only Emirates 24|7 offers causes, citing French fiscal concerns and a bond selloff, and attributes the explanation to a single strategist.