Euro sinks to 17-month low against dollar amid debt concerns
The euro dropped to a 17-month low against the US dollar on Monday, sparking concerns about a potential new financial crisis. The currency's decline was driven by rising worries over eurozone debt, especially in France, as well as broader investor anxieties about global bond yields and soaring oil prices.
The euro has been in steady decline against the dollar for much of 2026, losing around 5% of its value since the beginning of the year. By Monday, it hit $1.12, a level not seen since early 2025. Analysts attribute the slide to shifting investor expectations regarding US Federal Reserve policy, particularly the prospect of higher interest rates.
Ricardo Amaro, lead eurozone economist at Oxford Economics, emphasized that the general slide in the euro's value stems from a repricing of investor expectations regarding US monetary policy.