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Euro hits weakest level in 16 months as Fed hawkish bets lift dollar
The euro dropped as much as 0.5% to $1.1312, with the common currency on track for its worst monthly performance since July 2025.
The euro fell to its weakest level in 16 months as expectations that the Federal Reserve could push rates higher bolstered the US dollar, LiveMint Markets reported. On Tuesday, the common currency dropped as much as 0.5% to $1.1312, the lowest since May 2025.
The move was also tied to rising US yields, with the US 30-year yield rising to the highest level since 2002. LiveMint Markets said that nearly all Group of 10 currencies were down against the dollar during Tuesday trading.
Investors have leaned toward broader dollar strength as the euro weakens on bets that additional rate increases may be needed in the US to fight inflation. LiveMint Markets added that the euro was on track for its worst monthly performance since July 2025, and noted the Bloomberg Dollar Spot Index was up about 2% in September.
LiveMint Markets also cited expectations that the US currency could extend its rally, and said the euro had fallen 2.6% against the US dollar.