Euro falls to 17-month low against U.S. dollar

The euro fell to its lowest level against the U.S. dollar in 17 months on Monday amid growing investor concern over France's fiscal situation and political uncertainty.

Extending its decline for a fourth consecutive week, the common European currency dropped as low as 1.1161 U.S. dollars, its weakest level since May 2025.

French government bonds have also come under increasing pressure. Last week, the yield spread between French and German 10-year government bonds briefly exceeded 150 basis points for the first time since late 2011.

Investors are increasingly concerned about France's rising debt burden and possible political gridlock ahead of next year's presidential election. Markets are assessing whether these factors could increase fiscal risks across the wider eurozone.

At the same time, safe-haven demand and relatively firm U.S. Treasury yields supported the dollar. The dollar index, which tracks the U.S. currency against six major peers, rose by as much as 0.47 percent to 102.37 on Monday.

However, the dollar's gains were limited by weaker U.S. employment data, which reduced market expectations for near-term interest rate increases by the Federal Reserve.

According to CCTV+, the euro's decline reflects growing financial market concern over France's fiscal position, political uncertainty and the outlook for U.S. monetary policy.