Euro Tumbles to 2025 Low Amid French Budget Uncertainty

The EUR/USD has dropped to its lowest level since May 2025, falling just under 1.1250 on Thursday.

This comes as France unveiled a 2027 budget aimed at reassuring investors who lend it money, and the country's public-sector pay and most pensions have been frozen to limit the deficit to 5% of Gross Domestic Product (GDP).

The European Central Bank (ECB) raised its deposit rate to 2.50% on September 10, and markets are pricing in more interest rate hikes due to inflation above 3%, which will increase what France pays on new debt.