Euro Falls to Lowest Level Against U.S. Dollar Since May 2025
French debt worries and Spanish election risk pushed the euro to a 17-month low, while France's CAC 40 fell 0.7%, analysts said.
- The Euro fell below $1.12 on Monday amid political uncertainty in France and Spain, threatening the stability of the Eurozone currency bloc.
- French government bond yields neared a 24-year high as the administration attempted to narrow the budget deficit to 5% of GDP with $60.6 billion in spending cuts.
- Commonwealth Bank of Australia strategist Joseph Capurso said the Euro could drop "to under $1.10," while Barclays analysts cited doubts about sustaining 2% inflation despite reduced tightening urgency.
- French stocks, including the CAC 40 Index, traded 0.7% lower on Monday, while the dollar marched higher, supported by elevated US Treasury yields scaling multi-decade highs.
- Analysts at ING warned that fiscal fundamentals remain weak ahead of next year's presidential election, with no candidate presenting a detailed plan to stabilize the debt-to-GDP ratio.
30 Articles
30 Articles
The euro has fallen to its lowest level since May 2025. France's public finances and political uncertainty put pressure on the common currency.
Greenback steady as euro trades around 17-month low amid French debt worries
[SINGAPORE/LONDON] The euro steadied just above a 17-month low on Tuesday (Oct 6) as eurozone bond markets stabilised, a day after the currency fell sharply on fears that stress in French bond markets... Read more at The Business Times.
The euro continues to fall, it evolves at its lowest level since May 2025. "Political turbulence in Europe weighs on the euro." Like the still very uncertain situation in France.
The euro is trading near its lowest levels in 17 months, driven by concerns over France's high debt burden and potential bond pressure spreading across the Eurozone. Political uncertainty in Europe is weighing on the common currency, while the dollar maintains its strong performance, supported by high bond yields.
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