{
  "id": 12186438,
  "title": "Euro plummets against US dollar: has the next financial crisis begun?",
  "url": "https://urgent.news/2026/10/05/euro-plummets-against-us-dollar-has-the-next-financial-crisis-begun",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T14:28:00.000Z",
  "source": {
    "name": "DW English (Top Stories)",
    "slug": "dw-english-top-stories",
    "url": "https://www.dw.com/en/euro-plummets-against-us-dollar-has-the-next-financial-crisis-begun/a-79549031?maca=en-rss-en-top-1022-xml-mrss"
  },
  "original_language": "en",
  "account": "The euro has reached a 17-month low against the US dollar, sparking concerns about a potential financial crisis. This decline has been driven by worries over eurozone debt, especially in France, as investors have become increasingly concerned about higher fiscal risks. As of Monday, the euro was trading at $1.12, its lowest level since early 2025. Ricardo Amaro, a lead eurozone economist, explained that the general drop in the euro's value is due to a reassessment of investor expectations regarding interest rates set by the US Federal Reserve, given the rising global bond yields. However, the recent sell-off in the euro is primarily attributed to the fiscal concerns surrounding France. French 10-year government bonds have seen their yields climb to a 5% level, reflecting growing doubts about the country's long-term financial stability. France has faced persistent fiscal challenges since President Emmanuel Macron's administration, with public spending rising while tax cuts were introduced, leading to a significant increase in the national debt. Currently, France's debt-to-GDP ratio stands at nearly 118%, and the annual budget deficit regularly exceeds 5%, surpassing Macron's initial target of 3.4%. This fiscal strain, coupled with political instability and concerns over the right-wing National Rally's potential victory in the 2027 presidential election, has fueled investor apprehension about France's economic future. The widening gap between French and German government bond yields has further unsettled markets, with Deutsche Bank's Jim Reid warning of a \"mini-panic\" in the bond markets. The European Central Bank (ECB) faces the challenge of maintaining stability without exacerbating the situation, as a hawkish stance could further pressure France's bond yields. Analysts are divided on whether this marks the beginning of a new sovereign crisis in the eurozone. While some, like BNY's Geoffrey Yu, dismiss comparisons to the 2012 debt crisis, others, such as Amaro, stress the need for careful monitoring and management of the situation, as the weakening euro could exacerbate inflationary pressures and increase the cost of imported goods.",
  "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": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "DW News",
        "title": "Euro plummets against US dollar: has the next financial crisis begun?",
        "url": "https://urgent.news/2026/10/05/euro-plummets-against-us-dollar-has-the-next-financial-crisis-begun-12188481",
        "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."
}