Euro Plummets to 17-Month Low as Inflation Concerns Mount

The euro plummeted to its lowest level against the dollar in nearly 17 months as investors grew increasingly concerned about renewed inflation pressures. The global sovereign bond selloff drove yields higher, with French government bonds reaching their highest level in 14 years.

EUR/USD fell to $1.1215 before settling around $1.1243, down a significant 0.77%. This marked the euro's largest monthly drop since July 2025, as it had already declined approximately 2.5% in September alone.

The rise in U.S. Treasury yields was also notable, marking the steepest quarterly increase since 1994. The combination of these factors fueled investors' concerns about inflation, which has been exacerbated by elevated crude oil prices.