Euro Falls to 17-Month Low Amid Rising Eurozone Political and Fiscal Risks

• Euro (EUR) hit 17-month low against US Dollar (USD) on Monday.
• Driven by political uncertainty in Spain and France’s rising debt concerns.
• Fell as much as 0.8% against the dollar, trading below $1.12.

The Euro (EUR) declined to its weakest level against the US Dollar (USD) in 17 months on Monday, reaching its lowest point since May 2025. The single currency fell as much as 0.8% against the greenback, trading below $1.12, with its monthly decline accelerating to approximately 1.2%. This downturn was primarily attributed to increasing political and fiscal risks within the Eurozone. Specifically, reports of potential early elections in Spain and growing investor concerns regarding France’s debt position and rising borrowing costs amplified market anxiety over the political stability and economic trajectories of major economies within the bloc.