Euro Hits 17-Month Low Amid Rising Oil Prices and Inflation

The euro has hit its lowest point in 17 months against the US dollar, falling below $1.13 for the first time since May 2025.

This decline is largely due to rising oil prices and inflation, which have had a significant impact on the European economy.

Rabobank's head of FX strategy Jane Foley stated that 'this growth risk has been hanging over the euro' and that 'positions were very long' on the currency, contributing to its decline.

The eurozone is facing rising inflation rates, with August data showing a higher-than-expected increase in prices. This has led to concerns about the European Central Bank's (ECB) ability to control inflation.