Euro Weakens as Euro Zone Concerns Mount

The euro faced renewed pressure on Tuesday, hovering near its 17-month low as political instability and fiscal worries across the euro zone dragged on the currency. According to Reuters, the euro dipped to $1.1219 during Asian trading, following a drop to its lowest point since May 2025 in the previous session. The currency has lost approximately 1.2% over the past week.

Meanwhile, the dollar continued its rally, supported by rising U.S. Treasury yields. The euro also weakened against the British pound, trading at 84.87 pence after a more than 1% decline against sterling last week.