Forex
Euro Plunges Amid Energy Shock, Political Risks Weigh
The euro is experiencing pressure due to a global energy shock, rising political risks, and concerns over Europe's economic outlook.
In August, the euro was approaching $1.20 against the dollar but has since fallen by about 2% in September, reaching two-month lows just below $1.14.
The decline is attributed to a stronger dollar following a US rate increase, which reinforced expectations of a firm stance on inflation from the Federal Reserve.
Political risks are also weighing on the euro, particularly in Germany and France, where Chancellor Friedrich Merz is facing pressure after strong gains by the far right in recent state elections.