Euro slides to a 17-month low as French debt worries grow
The euro fell to its lowest against the dollar in 17 months on Monday, with quotes between about $1.1118 and $1.1246 at different times of day. The trigger was France's 2027 budget plan, unveiled last week, which investors judged too soft. AFP reported French debt heading to nearly 122 per cent of GDP and the 10-year yield at about 4.8 per cent, the highest since the 2011 eurozone crisis. The dollar index was near 101.97. Weak US jobs data had cut expectations of a Fed hike but the dollar held firm on safe-haven buying amid a global bond sell-off.
A fiscal scare in the euro area pushes money into dollars, which is the last thing the rupee needs.
Foreign travel, overseas tuition and imported electronics cost more when the dollar is strong.
Watch the French-German bond spread. If it keeps widening, it spreads to every emerging market currency.
DailyDrop India edition No. 1 · Morning · MON., OCT. 5, 2026