Euro hits 17-month low as French financial fears mount

The euro fell sharply on Monday to its lowest level in 17 months, as financial concerns in France triggered a broad sell-off in the bond market, raising fears of financial contagion across the eurozone.

In Asian trading, the euro dropped to $1.1161, its weakest since May 2025, after four consecutive weeks of losses. The decline comes amid rising French debt levels and worries over political gridlock ahead of elections scheduled for next year.

Impact on currencies and global markets

In the latest trading, the single European currency was down 0.67% at $1.1178, and also fell 0.4% against the Swiss franc and 0.34% versus the British pound.

French bond futures slipped 0.13%, remaining near their lowest levels in recent weeks. Meanwhile, the yield on 10-year US Treasury notes stood at 5.262%, as some calm returned to markets after last week's turmoil pushed yields to a 24-year high.

The British pound also declined 0.24% to $1.32064, while the Japanese yen traded at 157.92 per dollar. The US dollar index, which tracks the greenback against six major currencies, rose 0.47% to 102.37 points.