Euro Slumps to 17-Month Low Amid Energy Worries

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

This decline comes as investors weigh the impact of higher oil prices and inflation on the European economy, along with rising political uncertainty.

Rabobank's head of FX strategy Jane Foley said that this growth risk has been hanging over the euro, and despite the ECB being one of the first central banks to hike interest rates, the euro hasn't been able to gain traction.

The dollar index was last up 0.31% on the day, around its highest level since mid-May, while US inflation rose less than expected in August, lowering expectations for a Federal Reserve rate hike this month.