Euro drops to 17-month low on France debt concerns

The euro experienced a 17-month low against the dollar on Monday, driven by fears of a potential sovereign debt crisis in Europe. French government bonds faced pressure due to concerns over the country's budget deficit, upcoming elections, and bond market selloffs. The yield gap between French bonds and German bunds widened to nearly 160 basis points, the largest since 2011.

Meanwhile, US economic data indicated persistent inflation concerns, boosting the dollar. The dollar index rose 0.28% to 102.19, while Japan's currency strengthened as the government pledged to control bond issuance.