{
  "id": 12169333,
  "title": "Euro plummets against US dollar: has the next crisis begun?",
  "url": "https://urgent.news/2026/10/05/euro-plummets-against-us-dollar-has-the-next-crisis-begun",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T14:28:00.000Z",
  "source": {
    "name": "DW Business",
    "slug": "dw-business",
    "url": "https://www.dw.com/en/euro-plummets-against-us-dollar-has-the-next-crisis-begun/a-79549031?maca=en-rss-en-bus-2091-rdf"
  },
  "original_language": "en",
  "account": "The euro has hit a 17-month low against the US dollar, falling as worries about eurozone debt, especially in France, and other global issues like rising oil prices have weighed on investors, according to a report by DW. In early trading on Monday, the euro fell to $1.12, the lowest level since early 2025, marking a 5% drop since the beginning of the year. Ricardo Amaro, an economist at Oxford Economics, explained that the general decline is due to investors adjusting their expectations of the US Federal Reserve raising interest rates amid higher global bond yields. However, he noted that the latest drop was specifically triggered by concerns over France's fiscal risk. French 10-year government bonds, which indicate borrowing costs, surged to a 5% yield last week, reflecting growing doubts about France's long-term viability. President Emmanuel Macron's fiscal policies, including tax cuts, have contributed to France's increasing national debt, now exceeding €1 trillion. France's debt-to-GDP ratio is now almost 118%, and the country consistently posts budget deficits above 5%. Investors are seeking safer options, like German government debt, amid worries over low eurozone growth and surging energy prices. The spread between German and French 10-year debt yields has reached its highest since the 2012 eurozone debt crisis, signaling financial instability in the EU. The European Central Bank (ECB) faces pressure to act, but must avoid making the situation worse. While some experts, like BNY's Geoffrey Yu, dismiss the possibility of a new crisis, Amaro stresses the need for careful monitoring, as the ECB's forthcoming interest rate hikes and the worsening inflation outlook could complicate the situation.",
  "summary": "The euro has fallen to a 17-month low against the dollar. That will make inflation worse in the EU, where political worries and concern over French debt are already troubling investors. Is a fiscal crisis at hand?",
  "key_points": [
    "Euro hits 17-month low against US dollar at $1.12",
    "France's fiscal risk triggers drop, debt-to-GDP ratio 118%",
    "ECB under pressure, experts divided on crisis likelihood"
  ],
  "editors_take": null,
  "illustration": "https://urgent.news/ill/12169333.png",
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "DW English (Top Stories)",
        "title": "Euro plummets against US dollar: has the next crisis begun?",
        "url": "https://urgent.news/2026/10/05/euro-plummets-against-us-dollar-has-the-next-crisis-begun",
        "published": "2026-10-05T14:28:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}