The euro dropped to about $1.1161 on Monday, its weakest since May 2025, as investors focused on France's debt and political gridlock.
The euro slid on Monday to a 17-month low as fiscal worries in France weighed on the currency. Reuters said it fell as low as $1.1161 in Asian trading, the weakest since May 2025, and was last down 0.68 percent at $1.1176.
The Guardian said the single currency fell as much as 0.8 percent to below $1.12 and was about eight cents below a January peak near $1.20. Investors linked the move to France's rising debt costs ahead of next year's presidential election.
Prime Minister Sebastien Lecornu's minority government has proposed a 54 billion euro savings drive to limit the deficit from 5.5 percent of GDP this year to 5 percent next year. He has warned that without action the gap could reach 6.5 percent. The plan includes cuts to pension spending and to departmental budgets other than defence, the Guardian reported.
French bond futures stayed near recent lows while German Bund futures rose, Reuters said, as investors sought safer euro-area debt. Analysts quoted by Reuters said budget promises were hard to treat as credible with a change of power expected.
The European Central Bank has not announced a new intervention. Markets were also still reacting to a broader bond sell-off tied to higher oil prices.