Doha:The dollar has been trading close to its highest level this year against the euro and is poised for the most significant monthly increase against the currency in 14 months. This rise is driven by strong U.S. growth and increased U.S. interest rates, contrasting with energy and debt concerns in Europe.

According to Qatar News Agency, the euro dropped to its lowest point since May 2025 on Tuesday, reaching $1.1312, and was trading at $1.1339 in Asia on Wednesday. The euro is also testing support around 178 yen.

For September, the dollar has risen nearly 2.5% against the euro and is on track for a third consecutive quarterly increase. The stronger dollar has also pushed the Australian dollar below 70 cents for the first time since early August.

On Tuesday, the dollar reached a 16-and-a-half-month high against the Swiss franc at 0.8358 francs. The yen, after US-Japan yen buying in July and August and an increase in Japanese rate hikes, has lost popularity as a short against the dollar.

The Australian dollar was around 0.6986 against the U.S. dollar at the start of the Asian session, up 20 points from the previous day's low, while the New Zealand dollar stabilized at 0.5638 after hitting its lowest level since last November.

Meanwhile, the yuan is set to achieve its seventh consecutive quarterly gain against the dollar, ahead of the Chinese holiday beginning in early October and lasting through the 7th of the month.