Euro falls to 17-month low against dollar amid French debt fears
Summary
The euro has fallen to its lowest point in 17 months against the U.S. dollar due to worries about France’s rising government debt. Concerns about France’s financial situation are causing investors to doubt the stability of the eurozone, especially with upcoming elections in France and Spain adding uncertainty.Key Facts
- The euro dropped to below $1.12, its lowest since May 2025.
- The euro has fallen around 1.2% this month and about eight cents since January’s peak of $1.20.
- France’s government debt costs have increased, causing investor concern.
- French stock market (CAC 40) fell by 1% while other European markets mostly rose.
- Spain announced a snap election after political conflicts delayed housing laws.
- French 10-year government bond yields hit highest levels since 2002, signaling rising borrowing costs.
- France plans a €54 billion savings program to reduce its budget deficit from 5.5% to 5% of GDP next year.
- Political uncertainty, including rising support for the far-right party in France, worries investors about the country’s ability to control its debt.
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