The euro fell to a 17-month low against the United States dollar on Monday as concern over France’s public finances spread across European markets.
The single currency dropped to about $1.116 in Asian trading, its weakest level since May 2025 after four consecutive weeks of declines.
French government bonds have faced heavy selling as investors question whether Paris can reduce its budget deficit and stabilise a debt burden approaching 120 percent of economic output.
The yield gap between French and German ten-year bonds moved above 150 basis points, signalling a sharp increase in the risk premium demanded for holding French debt.
Political uncertainty ahead of France’s 2027 presidential election has added to market anxiety and complicated efforts to agree on durable fiscal reforms.
France’s CAC 40 index also declined, while pressure on the euro raised concern that instability in Europe’s second-largest economy could affect other heavily indebted members.
The dollar remained supported even after weak American employment data reduced expectations that the Federal Reserve would raise interest rates again in October.
Markets are now watching the European Central Bank for signs that policymakers may respond if the bond-market turbulence develops into a broader eurozone problem.
Sources: Reuters; Financial Times; Euronews.
Featured photo: Pierre G/Unsplash.
Zeynep Aziz is a social-affairs specialist, writer and advocate with advanced academic qualifications in both Social Sciences and International Relations. Her multidisciplinary education has given her a strong understanding of society, public policy, human rights and the political forces shaping Turkey’s domestic and international development.
For many years, Zeynep has been actively engaged in social affairs and initiatives supporting the rights and well-being of Turkish citizens. Her work pays particular attention to social equality, democratic participation and the protection of vulnerable and disadvantaged communities.
Women’s rights remain central to her interests and advocacy. She works to raise awareness of the challenges faced by women in Turkey, including discrimination, violence, unequal opportunities and barriers to full participation in political, professional and social life. She strongly supports women’s empowerment, equal access to education and employment, and effective legal protection for women and girls.
Alongside her social work, Zeynep closely follows Turkey’s international relations and foreign policy. She takes a keen interest in Turkey’s relations with Europe, neighbouring countries and international institutions, as well as the impact of regional and global developments on Turkish society.
Through her writing and public engagement, Zeynep seeks to encourage informed discussion, strengthen respect for human rights and contribute to a fairer, more democratic and inclusive Turkey.
Zeynep Aziz
