The US dollar held near its strongest level of the year against the euro on Wednesday and was on track for its biggest monthly gain in 14 months.

The greenback has benefited from its safe-haven appeal amid global trade tensions and shifting interest-rate expectations. The euro weakened as investors favoured dollar assets through September.

The Japanese yen also slid after Bank of Japan governor Kazuo Ueda’s comments, while the Chinese yuan weakened alongside regional currencies.

In India, the rupee rose 7 paise to 95.87 against the dollar in early trade, according to PTI. Currency traders said dollar demand from importers was offset by likely central bank support. The rupee’s movement remains tied to foreign fund flows and crude oil prices.

The euro’s weakness also reflects concerns about Europe’s economic outlook and energy costs ahead of winter. Analysts said currency markets will stay volatile as central banks signal their next moves on interest rates.