Why Is the Euro at a 17-Month Low? Spain and France Are Only Half the Story
Key Summary
The euro has fallen to a 17-month low against the dollar, losing 0.8% during Asian hours, with the current price at $1.1179. This decline, which is 4.86% for the year, is attributed to concerns over Spain's government potentially calling an early election and higher interest rates, which are slowing European share sales. The euro's decline is also linked to a shaky French government and strained public finances, with borrowing costs reaching 152 basis points, its widest since 2011. The European Central Bank's interest rate hike in September has added to the pressure, with the prospect of further increases clouding the outlook for share sales.
The euro slid to a 17-month low against the dollar on Monday. Reports that Spain’s government may call an early election deepened worries already building over France’s budget. Higher interest rates add a second strain, slowing European share sales after a strong start to 2026. Madrid Joins Paris on the Market’s Worry List According to