Euro Falls to 17-Month Low Amid France's Debt Crisis

The euro fell to a 17-month low against the US dollar on Monday. Rising fragmentation in the European bond market and France's sovereign debt crisis strengthened investors' risk-averse sentiment.

The euro depreciated by 0.7% to $1.1170. During the day, its rate fell as low as $1.1160, the lowest level since May 2025. This marked the fourth consecutive week of decline for the euro, as international investors continue to pull back from French assets.

The euro's depreciation became one of the main drivers behind the dollar's strengthening. The dollar index, which measures the US currency's exchange rate against six major currencies, rose by 0.5% to 102.48. The dollar managed to gain ground despite relatively weak US macroeconomic data, as heightened uncertainty in European markets shifted investors' attention from Europe toward US assets.

The euro also depreciated by 0.3% against both the Japanese yen and the Swiss franc. Against the yen, its rate fell to the lowest level since November 2025.

According to analysts at Lloyd's Bank, the economic data calendar for this week is relatively light. Market attention will mainly shift to the eurozone's final September services and composite PMI figures.

Analysts say this data will provide a more detailed picture of economic activity in the eurozone and may offer additional insight into the impact of rising energy prices over the month. In preliminary estimates, the impact of higher energy prices was relatively limited.