{
  "id": 12242928,
  "title": "Euro drops to 17-month low on France debt concerns",
  "url": "https://urgent.news/2026/10/05/euro-drops-to-17-month-low-on-france-debt-concerns-12242928",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-05T22:26:10.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/business/2026/10/06/euro-drops-to-17-month-low-on-france-debt-concerns"
  },
  "original_language": "en",
  "account": "The euro recently hit a 17-month low against the dollar, falling to US$1.1211 after dipping as high as 0.8% to US$1.116, marking its weakest level since May 2025. This decline was driven by concerns over France's capacity to control its budget deficit and a significant sell-off in bond markets the previous week, which fueled worries of a potential sovereign debt crisis in the euro zone. France's government bonds have faced pressure recently due to expectations of higher policy rates and increasing political uncertainty ahead of the 2027 French election, raising doubts about the country's ability to stabilize its public finances. The yield gap between French bonds and German bonds widened to nearly 160 basis points, the widest since the 2011 euro zone sovereign debt crisis. Market participants seem to be rejecting the upcoming French budget, with expectations of fiscal austerity being undermined by the approaching election. The euro's decline follows a four-week streak of weekly losses against the dollar, totaling a 3.1% drop, its longest such streak since May 2025. In contrast, the dollar benefited from inflation concerns, with expectations for a Federal Reserve rate hike at the end of the month decreasing significantly. US economic data, including the nonmanufacturing Purchasing Managers Index dropping to 54.9 from 55.4, and rising business input prices, further supported the greenback. The dollar index rose to 102.19, its highest level since April 10, 2025, after Trump announced a tariff package dubbed \"Liberation Day.\" Meanwhile, Japan's dollar strengthened 0.12% to 158.04, despite Prime Minister Sanae Takaichi's pledge to control bond issuance and address market turbulence, reflecting growing concerns about Japan's deteriorating public finances.",
  "summary": "Concerns over France's budget deficit and a sharp bond selloff heightened fears of a potential sovereign debt crisis in the euro zone.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "CNA - Business",
        "title": "Euro drops to 17-month low on France debt concerns",
        "url": "https://urgent.news/2026/10/05/euro-drops-to-17-month-low-on-france-debt-concerns",
        "published": "2026-10-05T07:43:40.000Z"
      },
      {
        "outlet": "Free Malaysia Today",
        "title": "Euro drops to 17-month low on France debt concerns",
        "url": "https://urgent.news/2026/10/05/euro-drops-to-17-month-low-on-france-debt-concerns-12244907",
        "published": "2026-10-05T22:26:10.000Z"
      }
    ]
  },
  "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."
}