Euro Sinks to 17-Month Low Amid US Yield Surge and European Uncertainty
The euro has hit a 17-month low against the US dollar, falling below $1.13 for the first time since May 2025.
This drop is largely attributed to rising US Treasury yields, which have experienced their biggest quarterly jump since 1994.
Europe is facing its own set of challenges, including high oil prices that contribute to sticky inflation and a decrease in investor confidence due to falling bond prices and sliding stocks.
National Australia Bank's strategist Ray Attrill notes that the level of the US 10-year yield is currently driving market movements, while Rabobank's Jane Foley points out lingering growth worries and political uncertainty in Europe, including tension in French politics and pressure on Germany's leadership after strong far-right results in regional polls.