Muscat:The dollar is nearing its highest level this year compared to the euro and is on track for its largest monthly increase against it in 14 months. This surge is fueled by US economic growth and rising interest rates, contrasting with the energy and debt concerns affecting Europe.

According to Oman News Agency, the euro recently fell to its lowest point since May 2025, reaching $1.1312, and is currently trading near $1.1339 in Asia. It is also testing support around 178 yen. In September, the dollar has risen nearly 2.5% against the euro and is set for a third consecutive quarterly gain.

The robust dollar has also influenced other currencies. It pushed the Australian dollar below 70 cents for the first time since early August and reached a 16-1/2-month high against the Swiss franc at 0.8358 francs. The yen has lost favor as a short against the dollar following US-Japan yen buying activities in July and August, as well as an increase in Japanese rate hikes.

Additionally, the Australian dollar started the Asian session at around 0.6986 against the US dollar, rising 20 points from the previous day's low. The New Zealand dollar stabilized at 0.5638, after reaching its lowest level since last November. Meanwhile, the yuan is set to achieve its seventh consecutive quarterly gain against the dollar, as trading winds down before the Chinese holiday starting in early October and lasting through the 7th.