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Dollar Index hits 18-month peak as euro weakens on France debt worries

The gap in 10-year borrowing costs between France and Germany widened to about 1.5 percentage points, the widest since 2011, as the euro’s move drove most of the index’s rise.

Reported · Written up by our desk · Major Pairs

The Dollar Index rose to an 18-month high as concern about French government debt boosted demand for the dollar, with European borrowing spreads worsening, according to FXStreet.

FXStreet reported that the gap between France and Germany’s 10-year yield reached roughly 1.5 percentage points on Friday, the widest since 2011, while the euro, which makes up 57.6% of the Dollar Index, fell to its lowest level since May 2025.

FXStreet also noted that the index’s climb to Monday’s high was driven largely by the euro, and that the Euro strengthened back above 1.1200 after an ISM services index print of 54.9 versus a 55 forecast.

After reaching a peak just above 102.50, the Dollar Index then gave back about half of the gains in two drops, with levels staying above 102.00 for both declines.

Latest closeDollar index 101.92 ▼0.2%

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