NEW YORK — Reuters: The US dollar extended gains against major currencies while the euro headed for a fifth consecutive weekly decline amid European debt concerns, oil-price volatility and uncertainty about Federal Reserve policy.
Dollar Extends Its Rally
The dollar index rose 0.13% to 102.25, on course for its fourth straight weekly gain. The euro slipped to $1.1198 after reaching a 17-month low of $1.1161 earlier in the week.
European Fiscal Risks Weigh on the Euro
Investors remain concerned about France’s public debt and the political obstacles to reducing its budget deficit. Political developments in Spain have added pressure on the single currency.
Oil Rebounds
Brent crude rose to $104.88 per barrel and US crude to $92.04, recovering from earlier lows after reports of a vessel strike near the UAE. Oil had fallen earlier following remarks by the US president about Iran.
Fed Policy in Focus
Markets priced a 19.4% probability of a rate increase in October and an 85.8% probability for December, according to CME FedWatch figures cited in the report. University of Michigan data also showed weakening US consumer sentiment amid rising living costs.
Sterling and Yen Under Pressure
Sterling edged up to $1.3235 but remained on course for a seventh weekly decline, while the dollar strengthened to 158.25 yen.
What Comes Next?
The bottom line: Currency markets remain sensitive to oil prices, European fiscal risks, inflation data and Federal Reserve commentary. Source: Reuters, October 9, 2026. Figures reflect that report, not live prices.
