Euro fell to a 17-month low against the dollar - what are the reasons

The euro fell to its lowest level since May 2025 amid France’s financial problems, while the dollar strengthened despite weak U.S. employment data. This was reported by Reuters on October 5, UNN reports.

Details

On Monday, the euro plunged to a 17-month low as fiscal concerns in France, amid a sharp collapse in the bond market, heightened fears that the crisis could spread across the region, helping the dollar strengthen despite weak U.S. employment data that reduced expectations of a rate hike in the near term, the publication writes.

The euro fell to $1.1161 in Asian trading, its lowest level since May 2025, following four consecutive weeks of declines, weighed down by France’s debt level and concerns about a political deadlock ahead of next year’s elections, the publication notes.

According to the available information, the single currency was last down 0.68% at $1.1176, weakening 0.5% against the Swiss franc and falling 0.39% against the pound sterling.

"Bond market turmoil and euro weakness have raised fears that France’s problems could spread to the eurozone, similar to the debt crisis more than a decade ago, and force the European Central Bank to help shore up French debt. Some analysts, however, said it was still too early to judge whether the risk of contagion was increasing," the publication writes.

Meanwhile, Ninghui Liu, head of investment strategy and research for the Asia-Pacific region at State Street Investment Management, said that "France’s fiscal position is becoming increasingly unstable, while the market has only been reacting since last week."

"For now, I think this is more a story about a country than a euro crisis," he added.

To remind you

The NBU set the dollar exchange rate at UAH 44.9857 and the euro exchange rate at UAH 50.5333 for October 5.