Dollar Surges on Robust US Jobs Data, While Lira, Yen Slump

Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken on Sept. 23, 2022. Florence Lo/Reuters

LONDON—The dollar surged to a three-week high against the euro on Monday, with traders expecting the U.S. Federal Reserve to lift its benchmark rate above 5 percent to squeeze inflation after data showed the labor market remains strong.

An earthquake in central Turkey and northwest Syria and a strong U.S. dollar added pressure on emerging currencies sending Turkey’s lira to a record low of 18.85 against the dollar.