Dollar Strengthens Amid U.S. Job Gains and Geopolitical Tensions

The dollar surged to a three-week high against the euro following better-than-expected U.S. private payroll data for September. Traders monitor rising geopolitical tensions and await government job data. Improving U.S. economic indicators and hawkish Federal Reserve comments also boost the dollar. Euro and yen decline amid their respective monetary policies.

The dollar surged to a three-week high against the euro on Wednesday, propelled by stronger-than-expected U.S. private payroll figures for September as reported by the ADP National Employment Report. This comes just ahead of Friday's anticipated nonfarm payroll data.

According to economists polled by Reuters, last month's private payrolls rose by 143,000, surpassing the forecast of 120,000 additions and an upwardly revised 103,000 in August. This promising data set the stage for traders to revise their rate cut expectations for the Federal Reserve's meeting next month.

Meanwhile, geopolitical tensions escalated following Iran's missile strike against Israel, prompting fears of wider conflict in the oil-rich Middle East, further influencing safe-haven demand for the dollar.

(With inputs from agencies.)