Euro Slumps to 17-Month Low Amid Spain and France Political Turmoil

The euro reached its weakest point against the U.S. dollar in 17 months on Monday, dropping 0.6% to its lowest level since May 19, 2025, according to LSEG data. This decline reflects broader market concerns over political instability in Spain and France, two of the eurozone's largest economies. Spain is heading for a snap election after recent housing crisis protests, while France faces growing market skepticism about its fiscal policies.

Both economies are also struggling with higher inflation, interest rates, and borrowing costs. However, the eurozone is further burdened by low growth and political volatility, which have contributed to the currency's decline. The euro's weakness highlights the challenges facing the region as it navigates these economic and political headwinds.