Euro Sinks to 17-Month Low Amid Oil Prices and Inflation

The euro hit its lowest point in 17 months on Thursday, as investors battered European assets in light of higher oil prices and inflation. The European currency fell below $1.13 for the first time since May 2025 against the dollar.

This decline was due to a combination of factors, including higher US Treasury yields, which rose by the largest quarterly amount since 1994, and increasing political uncertainty in Europe, particularly in France and Germany.

Data on Wednesday showed that US inflation rose less than expected in August, while euro zone inflation surged. Despite this, Rabobank's Jane Foley said 'this growth risk has been hanging over the euro.'