Euro Drops to 17-Month Low Amid Eurozone Debt Fears

The euro hit a 17-month low against the dollar on Monday, driven by rising concerns over France’s budget deficit and a recent bond-market sell-off. The single currency dropped 0.37% to $1.1211, after briefly falling to $1.116, its lowest level since May 2025.

The euro also marked its fourth straight weekly decline against the dollar, losing 3.1% over the period, its longest weekly losing streak since May 2025. Meanwhile, the dollar index, which tracks the US currency against a basket of major currencies, rose 0.26% to 102.16, reaching its highest level since April 10, 2025.

The decline in the euro was fueled by fears of a potential sovereign debt crisis in the eurozone, as investors grew increasingly worried about France’s ability to control its budget deficit. The sharp bond-market sell-off last week further intensified these concerns.