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Euro hits 17-month low vs USD amid inflation, political risks in Spain and France

Market News
05 Oct 2026
CNBC
View Source
Bearish
Euro hits 17-month low vs USD amid inflation, political risks in Spain and France

The euro fell to its weakest level against the U.S. dollar in 17 months due to rising inflation, interest rates, and borrowing costs in the eurozone. Political uncertainty in Spain, with a likely snap election over a housing crisis, and France's fiscal struggles with rising debt and weak growth have unsettled investors. Economists warn that France's budget plans are unlikely to stabilize its debt or meet fiscal targets before the 2027 presidential election, adding to eurozone economic concerns. These factors combined are pressuring the euro and raising questions about the region's economic outlook.

The euro's recent weakness is noted alongside Pluang's Financials-sector data for context. As of Oct 05, 2026 14:11 WIB, 53 of 85 US Financial stocks rose while 26 fell. Notable movers include GPN at USD 78.46 down 3.93%, BBVA at USD 26.98 down 3.19%, and WU at USD 6.06 up 2.71%.

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