Euro on Track for Steepest Weekly Loss in Four Months Amid France Fiscal Concerns

The euro is on track for its steepest weekly loss in about four months as concerns over France's deteriorating fiscal position and a more hawkish US interest-rate outlook weigh on demand for the single currency.

The euro fell sharply on Thursday, with some stability returning on Friday after oil prices eased amid discussions over the release of diesel and crude inventories. It was down 0.05% at $1.1240 by 1127 GMT and is on course for a 1.35% decline for the week.

The retreat has reversed some of the euro's earlier strength, illustrating how quickly currency markets can shift when interest-rate expectations, energy prices, and sovereign-risk concerns move in the same direction.