Euro Slides to 17-Month Low Amidst Oil Price Surge and European Uncertainty

The euro plummeted to a 17-month low on Thursday as investors sold European assets due to higher oil prices, inflation, and political uncertainty. The currency dropped below $1.13 against the dollar for the first time since May 2025.

This decline comes amidst a backdrop of rising Treasury yields, which have been in ascendance for the past couple of months. The largest quarterly rise in Treasury yields since 1994 has contributed to the dollar's strength.

Rabobank head of FX strategy Jane Foley attributed the euro's weakness to its growth risks and concerns about Europe being an energy importer. The currency also sank against the yen, the Swiss franc, and barely held steady against the pound.