Dollar heads for best month in over a year as euro weakens

The dollar is near a yearly high against the euro, set for its largest monthly gain in 14 months, driven by strong US growth and rising interest rates, while Europe faces energy and debt concerns. The euro dipped to $1.1312 overnight, its lowest since May 2025, and is testing support around 178 yen. The dollar is up nearly 2.5% on the euro in September, pushing the Australian dollar below 70 cents for the first time since early August. European gas prices spiked to their highest since 2022, and French debt and political gridlock have widened the yield spread with Germany to its largest since 2012. The dollar also hit a 16-1/2-month high on the Swiss franc, while the yen has fallen 1.5% against the dollar in September.