Euro hits 17-month low
The euro fell to its lowest level since May 2025, amid increasing political and financial concerns in the Eurozone, particularly in France and Spain. This led to the European currency retreating against the dollar by up to 0.8%, reaching $1.1161. The decline was driven by worries over the worsening political situation in France as the presidential elections approach, and the French bond yield spread over German bonds reaching its highest level since 2011. Additionally, the strength of the US dollar, supported by expectations of an interest rate hike in the United States, put further pressure on the euro. Market sentiment suggests further declines in the euro are likely, as the full extent of the turmoil in the European bond market and the risks to financial stability in the region have not yet been fully absorbed.
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