The euro dropped to a 17-month low against the dollar on Monday as fears over France's debt and a snap election announcement in Spain fuelled uncertainty across the eurozone.
Key facts
- The euro fell as much as 0.8% against the dollar in early Monday trading, dropping below $1.12.
- It was the single currency's lowest level since May 2025.
- The euro has fallen about 1.2% this month and roughly 8 cents from a January peak of $1.20.
- France's CAC 40 index slid amid debt concerns.
- A snap election announcement in Spain added to eurozone uncertainty.
The euro has fallen to its lowest level against the dollar in 17 months, as growing concern over France’s debt position raised fears about the stability of the wider single currency bloc, according to the Guardian.
The single currency fell as much as 0.8% against the dollar in early trading on Monday, dropping below $1.12 before recovering slightly. That marked its lowest level since May 2025.
The decline adds to a broader slide for the euro, which has fallen by about 1.2% this month. The move accelerates a drop of roughly 8 cents against the dollar from a peak of $1.20 reached in January.
France’s CAC 40 index slid amid the concerns, the Guardian reported. The country’s debt position has emerged as a focal point for investors worried about knock-on effects across the eurozone.
Adding to the uncertainty, the announcement of a snap election in Spain also helped fuel concern across the single currency area, according to the Guardian.
Together, the developments in France and Spain contributed to the pressure on the euro during Monday’s trading session.
Why it matters
A weaker euro affects the purchasing power of hundreds of millions of people across the eurozone and can raise the cost of imports. Concerns that one member state's debt could threaten the stability of the shared currency underline how political and fiscal tensions in individual countries ripple across the whole bloc.
Frequently asked questions
How low did the euro fall against the dollar?
The euro fell as much as 0.8% against the dollar in early Monday trading, dropping below $1.12 before recovering slightly. It was its lowest level since May 2025.
Why is the euro falling?
According to the Guardian, the decline was driven by growing concern over France's debt position threatening the stability of the eurozone, along with uncertainty following the announcement of a snap election in Spain.
How much has the euro dropped overall?
The euro has fallen about 1.2% this month, accelerating a drop of roughly 8 cents against the dollar from a peak of $1.20 in January.