Euro hits lowest level against US dollar since May 2025

The euro has fallen to its lowest level against the US dollar since May 2025, dropping below the 1.12 threshold and reaching lows near 1.116 to 1.118. This depreciation is driven by several converging factors.

In the United States, rising Treasury yields and expectations regarding Federal Reserve monetary policy are strengthening the dollar. Additionally, market uncertainty persists ahead of the US midterm elections scheduled for November 3.

Within the Eurozone, political instability and fiscal fragility are weighing heavily on the currency. Significant concerns regarding high debt levels in France and Italy, alongside widening yield spreads between French and German bonds, have heightened fears of a potential debt crisis. Political tensions in France and potential early elections in Spain are also contributing to market volatility. Furthermore, rising energy costs and fluctuations in natural gas prices are impacting European economic competitiveness.