Euro Hits 17-Month Low as French Debt and European Political Risks Rattle Markets
publishers 12articles 14first reported 5 Oct, 04:34 UTCdeveloping since 5 Oct · 8 editions
The euro fell to its lowest level against the U.S. dollar in 17 months on Monday as investors focused on France’s strained public finances and renewed political uncertainty in Spain.
The currency dropped as much as 0.8% in early trading to below $1.12 before recovering slightly, The Guardian reported. LSEG data cited by CNBC showed it was later down 0.6%. France’s CAC 40 index fell about 1%, while Spanish stocks rose despite Prime Minister Pedro Sánchez calling a snap election for November amid protests over the country’s housing crisis.
Concern has centered on France, where the yield on 10-year government bonds reached 5% last week before easing. The gap between French and German 10-year borrowing costs also widened to its highest level since the eurozone debt crisis, according to The Guardian and Deutsche Welle.
France’s government has proposed reducing its budget deficit from about 5.5% of gross domestic product this year to 5% next year through a €54 billion savings program. Economists at Barclays said France was unlikely to meet its fiscal targets even if the plan is adopted, while ING strategists said the measures would not stabilize the country’s debt ratio.
Broader pressure from rising global bond yields, higher oil prices and weak eurozone growth has added to the currency’s decline. Deutsche Welle reported that the euro has fallen about 5% against the dollar since the start of 2026.
HOW THIS STORY WAS MADE
Written from 6 articles, 3 with the publisher's own text; 5 independent newsrooms once syndicated copies count as one; this version written 12 h after the record first saw the story; the editor kept it as written.
- Publishers
- 12
- Source articles
- 14
- Given to the writer
- 6, 3 with the article's own text
- Independent newsrooms
- 5
- This version written
- 12 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
Written by a language model from the sources above, then checked by a second model that may only cut, attribute or correct. How it works →