Euro drops to May 2025 levels on French budget concerns
The euro's price has fallen to its lowest level since May 2025 against the dollar, decreasing by 0.37% to reach 1.1211 dollars. This decline is driven by concerns over France's ability to control its budget deficit and political tensions ahead of the 2027 elections. Additionally, the single currency has been impacted by investors' worries about the worsening fiscal situation in the Eurozone. The yield spread between French and German bonds has widened to approximately 160 basis points, the highest level since the Eurozone debt crisis of 2011. This reflects investors' preference for safe havens, such as German bonds, amid the euro's fourth consecutive week of decline and a total loss of 3.1% in its value during this period.
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