Euro slides to 17-month low, hit by rates and inflation mix
SPY•The euro fell below $1.13 for the first time since May 2025, reaching a 17-month low as higher oil prices, inflation and political uncertainty weighed on European assets. The dollar marked its sixth straight quarterly gain against a basket of currencies, its longest streak since 2022.
1. Euro reaches new low
The euro fell below $1.13 against the dollar on Thursday for the first time since May 2025, and was last down 0.35% at $1.1291. It declined nearly 2.5% in September, its largest monthly drop since July 2025.
2. Inflation and uncertainty
Higher oil prices and inflation added to concerns about Europe’s regional economy. Political uncertainty included a contested French election expected next year and pressure on Germany’s chancellor after regional gains by the far-right AfD party. European stocks fell 0.66%, while French debt yields reached another 14-year high.
3. Dollar gains, Aussie slips
The dollar recorded its sixth consecutive quarterly gain against a basket of currencies, its longest such run since 2022. The Australian dollar fell to a two-month low of $0.6931 after domestic inflation came in below forecasts.
