Euro Slides to 17-Month Low Amid Inflation and Political Uncertainty

The euro has hit its lowest point in 17 months, falling below $1.13 against the US dollar for the first time since May 2025.

The decline is attributed to a combination of higher oil prices and inflation, as well as mounting political uncertainty in Europe.

Rabobank's head of FX strategy, Jane Foley, noted that 'this growth risk has been hanging over the euro' due to its status as an energy importer and concerns about European finances.

The dollar has benefited from rising US Treasury yields, which have reached their largest quarterly rise since 1994.