Euro Slides to 17-Month Low Amid French Debt Fears

The euro fell sharply on Monday to a 17-month low, driven by financial anxieties in France that emerged during a severe sell-off in the bond market. These developments heightened concerns about potential contagion risks across the region, helping the dollar overcome negative signals from weak American employment figures that had dampened expectations for near-term interest rate hikes.

French Fiscal Concerns Drive Currency Drop

In Asian trading sessions, the single currency declined to $1.1161, marking its weakest point since May 2025. This drop follows four consecutive weeks of losses for the euro, reflecting sustained pressure on the currency.

The downward trend is linked to high debt levels in France and growing worries over political gridlock ahead of elections scheduled for next year. These domestic factors have weighed heavily on investor sentiment, contributing to the broader weakness observed in the European currency.