Dollar Strengthens as Euro Struggles Amid French Fiscal Concerns

Dollar gains against euro as French debt worries and soft US jobs data fuel currency market shifts.

October 5, 2026 One Min Read

POLICY WIRE — New York, United States — The US dollar maintained its strong position this week, reaching a 17-month high as traders reassessed the likelihood of a Federal Reserve interest rate increase. This shift came after weaker-than-expected US employment data raised questions about the pace of economic growth.

The euro faced continued pressure, hitting a near 17-month low against the dollar. Analysts pointed to ongoing concerns over France’s fiscal health, including a projected deficit of 5.4% of GDP and public debt nearing 120% of GDP. These factors have contributed to uncertainty in European markets and increased demand for US assets.

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Market analysts noted that French political instability ahead of next year’s elections has further weighed on the euro. Meanwhile, the dollar’s resilience was supported by higher US Treasury yields and a broader trend of investors seeking safer assets amid global economic uncertainty.

Reporting by Policy-Wire (PW)

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