Euro hits 17-month low on European political risks

The euro weakened to its lowest level in 17 months as political and fiscal uncertainties in Europe intensified. Reports that Spanish officials are planning an early election heightened investor concerns, driving the shared currency down. In Asian trading, the euro dropped as much as 0.8%, briefly hitting 1.1161 per dollar.

Hedge funds in Asia contributed to the decline by selling the euro against the dollar in the cash market. This selling pressure triggered option barriers, which worsened the currency’s fall, according to traders. The drop marked the euro’s weakest point since May 2025.