Euro Drops to 17-Month Low as French Debt Fears Rattle Markets
The euro slid below $1.12 Monday, its weakest since May 2025, as concern over France's debt and Spanish political uncertainty weighed on the bloc.
The euro fell to its lowest level against the dollar in 17 months on Monday, sliding as much as 0.8% in early trading to dip below $1.12, as mounting anxiety over France's fiscal position rattled currency markets and raised broader questions about eurozone stability.
The single currency has now lost approximately 1.2% of its value against the dollar this month alone. The decline extends a sharper retreat from a January peak of $1.20, representing a drop of roughly eight cents against the greenback over that period — a move that reflects deepening investor unease about the bloc's financial outlook.
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France's benchmark Cac 40 equity index also fell as traders weighed the potential consequences of Paris's debt burden on the wider single currency area. Adding to regional uncertainty, the announcement of a snap election in Spain further unsettled eurozone sentiment, compounding pressure on the euro at the start of the trading week.
The confluence of political and fiscal headwinds across two of the eurozone's major economies has amplified market volatility, with analysts watching closely whether policymakers in Paris and Brussels will move to address investor concerns before pressure on the currency deepens further.
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