Euro Hits 17-Month Low as French Fiscal Concerns Weigh
France’s debt outlook and political uncertainty in Spain pressured the euro, even as major equity markets mostly advanced on Monday.
Key takeaways
- The euro fell to its lowest level against the dollar in 17 months amid concerns about French debt and deficits.
- French debt is projected to reach nearly 122% of GDP next year, while the 10-year yield hit 4.8%.
The euro fell to its lowest level against the dollar in 17 months on Monday as investors weighed France’s debt and deficit outlook. AFP reported the currency at $1.1217 around 2025 GMT; at 21:22 UTC, it traded at $1.1227, down 0.27% since the previous close.
France’s debt is projected to reach nearly 122% of GDP next year, despite planned spending cuts. Its 10-year government bond yield rose to 4.8%, the highest since the 2011 eurozone bond crisis.
Concerns over French fiscal policy followed an underwhelming 2027 budget plan. Uncertainty also grew after Spain’s prime minister called for snap elections, adding to pressure on the euro.
This article was produced with the help of AI technology. Source: Yahoo Finance
