Euro slides to 17-month low, hit by rates and inflation mix
FXE•The euro fell below $1.13 for the first time since May 2025 and reached a 17-month low as higher oil prices, inflation and political uncertainty weighed on European assets. The dollar recorded its sixth straight quarterly gain against a currency basket, its longest streak since 2022.
1. Euro hits new low
The euro fell below $1.13 against the dollar for the first time since May 2025, reaching its lowest point in 17 months. It was last down 0.35% at $1.1291 and declined nearly 2.5% in September, its largest monthly fall since July 2025.
2. Pressure on European assets
Higher oil prices and inflation weighed on the regional economy, while political uncertainty added to the backdrop. French debt yields reached another 14-year high amid concerns about France's finances, and German debt also came under pressure. European stocks fell 0.66%, alongside bond prices.
3. Dollar gains, Aussie falls
The dollar recorded its sixth consecutive quarterly gain against a basket of currencies, its longest such streak since 2022. The dollar index was up 0.31% and near its highest level since mid-May 2025. The Australian dollar fell to a two-month low of $0.6931 after domestic inflation undershot forecasts.
