Euro Hits 17-Month Low as Political Uncertainty in Spain and France Rattles Markets
7 Articles
7 Articles
Watch FX Markets: Euro Falls to 17-Month Low on French Fiscal Concern, Spain Political Uncertainty
The euro fell to its weakest level since May 2025 in Asian trading as reports that Spanish government officials are preparing for an early election added to concerns rocking France’s bond market. The currency is also under pressure from a strengthening dollar, which is being supported by expectations that the Federal Reserve will need to raise interest rates three more times by July to tame inflation. Bloomberg MLIV's Mark Cranfield reports.
The euro relaxed slightly after falling to the lowest level for 17 months, obvious since May 2025, with the worsening crisis in France and the Sanchez government's decision to anticipate the elections. (ANSA)
European yields are generally falling in shorter maturities on Monday, but rising at the long end, mainly in France but also in Italy, Greece and Spain. Interest rate spreads against German yields are thus widening, with the German ten-year yield falling 2 basis points to 3.45 percent.
The value of the euro fell to its lowest level in 17 months due to political and fiscal instability in major European countries, including France, and the impact of rising energy prices.
The Hungarian stock market started the week with a slight rise, while the French market was dragged down by worries about government debt and the fall of Schneider Electric. The euro fell to a 17-month low versus the dollar in Asian trading. In Budapest, OTP came into the spotlight after last week's nearly 12 percent drop in the exchange rate. The current exchange rate developments can also be tracked on the exchange rate page of the Pénzcentrum.
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