{
  "id": 16464451,
  "title": "Euro sinks on French debt worries; yen gains for week on AI rout",
  "url": "https://urgent.news/2026/10/25/euro-sinks-on-french-debt-worries-yen-gains-for-week-on-ai-rout",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-25T10:45:52.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/euro-sinks-french-debt-worries-yen-gains-week-ai-rout"
  },
  "original_language": "en",
  "account": "The US dollar index edged up 0.25% to 101.82, anticipating a week-on-week increase of 0.03%. On the other hand, the euro experienced a decline throughout Friday (October 23) and appeared set for a weekly drop against both the US dollar and the yen. This downturn was triggered by a sell-off in French government bonds, which elevated France's debt risk premium to its peak since the eurozone sovereign debt crisis of 2011. Meanwhile, the Japanese yen was poised for a weekly rise against the US dollar, profiting from safe-haven flows stemming from the decline in artificial intelligence stocks witnessed on Thursday.\n\nThe US dollar index remained unchanged on the week, while the euro suffered due to growing unrest in France and escalating budget issues. France's capital deployed 70,000 police and specialist units to quell additional protests over underfunded schools and rising living costs, as per Interior Minister Laurent Nunez. Although the country faced a potential downgrade by Moody's on Friday, it was fortunately averted. The euro fell by 0.21% to USD 1.1191, indicating a weekly decrease of 0.43%. It demonstrated a sharper drop against the yen, reaching its lowest point since October 2025 at 175.08 yen, and was on track for a weekly decline of 1.1%. The US dollar index, which gauges the greenback's value against a basket of currencies including the yen and the euro, increased by 0.25% to 101.82 and was on track for a weekly gain of 0.03%. Analyst Lee Hardman from MUFG noted that the yen weakened by 0.1% to 156.9 per US dollar and was set for a weekly gain of around 0.7%, its best week since mid-September. Traders are anticipating policy meetings next week at the US Federal Reserve, European Central Bank (ECB), and Bank of Japan (BOJ), all of which are expected to maintain current rates. However, investors will be watching for clues on the future trajectory of policy. Fed funds futures traders have reduced their forecasts for a December hike following the market sell-off on Thursday, yet they still maintain an 81% chance of such an increase, as per LSEG data. Traders project a 66% likelihood of an ECB rate hike in December. Investors will closely examine any hints regarding the outlook for interest rates after ECB President Christine Lagarde stated in late September that a moderate policy response to inflation was warranted. Purchasing Managers' Index (PMI) data revealed a slowdown in private-sector growth in the eurozone to its weakest pace in four months in October, hampered by a fresh contraction in France. Giada Giani, an economist at Citi, remarked, \"The drop brings the PMIs back in line with other growth indicators, in our view, rather than suggesting downside risks from here. Nevertheless, France remains a drag, but the rest of the euro area remains resilient.\" Meanwhile, Japan reported on Friday that core consumer inflation in September outpaced the central bank's 2% target for the first time in nine months, suggesting growing price pressures and strengthening the case for a near-term rate hike, according to analysts. Traders currently price in a 61% chance of a BOJ rate increase in December.",
  "summary": "The US dollar index rises 0.25% to 101.82, set for a weekly gain of 0.03%",
  "key_points": [],
  "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."
}