Dollar Extends Weekly Advance as US Yields Outpace European Risk

New York, 3 October 2026 – The US dollar was positioned for a fourth consecutive weekly gain against the euro as elevated Treasury yields, a firmer outlook for US interest rates and renewed concern over European sovereign debt strengthened demand for the world’s primary reserve currency. The move underscores how rapidly the foreign-exchange market is repricing differences in monetary policy, fiscal credibility and energy exposure across major economies.

The euro traded around US$1.1258 late on Friday, slightly higher on the day but still headed for its fourth straight weekly loss against the dollar, its longest such run since May 2025. The US Dollar Index eased 0.1% to 101.88 during the session, yet remained on course for a third weekly advance. Against other major currencies, the dollar slipped 0.3% to 0.8285 Swiss francs and eased 0.15% to 157.81 yen, while retaining a third consecutive weekly gain against Japan’s currency.