{
  "id": 14694533,
  "title": "Euro slides to fresh lows against US dollar and British pound despite ECB rate hikes",
  "url": "https://urgent.news/2026/10/15/euro-slides-to-fresh-lows-against-us-dollar-and-british-pound-despite",
  "topic": "world",
  "section": "World",
  "published": "2026-10-15T12:25:34.000Z",
  "source": {
    "name": "Euronews",
    "slug": "euronews",
    "url": "https://www.euronews.com/2026/10/15/euro-slides-to-fresh-lows-against-us-dollar-and-british-pound-despite-ecb-rate-hikes"
  },
  "original_language": "en",
  "account": "Europe's currency, the euro, dipped to its lowest levels against the US dollar and British pound in more than a year, despite the European Central Bank (ECB) raising interest rates twice this year, a move typically supportive of a currency. The slide was driven by rising energy costs, concerns over France's public finances, and a stronger US dollar. Even with the ECB's rate hikes, the euro traded at around $1.111 on Wednesday, its weakest point since mid-May 2025. It has fallen over 5% since late August, completely reversing its summer recovery. Against the British pound, the euro hit a low of roughly £0.842, the weakest since early June 2025, and bounced back slightly to about £0.846 by Thursday. The euro's decline also reflects the US dollar's strength; the US dollar index reached an 18-month high after US inflation rose to 3.7% in September, surpassing expectations. The US inflation data roughly doubled traders' expectations for a Federal Reserve rate hike on October 28, with the Fed's benchmark rate already at 3.75-4%, compared to the ECB's current 2.5%. The ECB raised its deposit rate by a quarter point to 2.5% on September 10 to counter the energy shock from the Iran war, leaving the Eurozone more exposed to the oil price spike than the US. Eurozone inflation has reached a three-year high of 3.8%. Traders are betting the ECB will hold rates steady on October 29 before raising them again in December. Belgian central bank governor Pierre Wunsch suggested another hike might be necessary, while Bundesbank president Joachim Nagel remained cautious, stating there are no clear signs inflation has impacted price and wage setting. In the UK, strong economic data has fueled speculation that the Bank of England may raise rates in November, bolstering the British pound. France's debt crisis added to the euro's woes; the extra yield investors demand to hold French 10-year debt, a measure of market nervousness, surpassed 150 basis points, the highest since the euro's debt crisis around 2011. France's 2027 budget, aiming to cut the deficit to 5% of GDP from 5.4% this year, faces a tough path through a divided parliament, with debates starting amid student protests demanding more public funding for education. France's public debt hit a record 119% of GDP at the end of June 2026, according to INSEE data, about €3.59 trillion, double the EU's 60% public debt-to-GDP threshold. ECB President Christine Lagarde has dampened hopes of the central bank stepping in, emphasizing the need for France to address its fiscal policies, stating on Wednesday during the IMF and World Bank Group annual meeting in Bangkok. Meanwhile, Spain is set for a snap election on November 29, adding political turmoil to market worries. Investors will closely watch final eurozone inflation figures on Friday, followed by interest rate decisions from the Federal Reserve on October 28 and the ECB the following day.",
  "summary": "The euro slid this week to its weakest level against the US dollar since mid-May 2025 and the British pound since early June 2025, as an energy shock, France’s debt crisis and a resurgent US dollar outweigh two interest rate hikes by the European Central Bank.",
  "key_points": [
    "Euro hits record lows vs USD and GBP, weakest since May 2025",
    "ECB rate hikes fail to support euro, despite higher US inflation expectations",
    "France's fiscal crisis and public debt of 119% GDP weigh on euro"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}