# Euro depreciation against US dollar > Live situation record from CLSTR: https://clstr.news/situations/euro-depreciation-against-us-dollar > Updated: 2026-10-05T00:56:07.000Z. Sources: 52. Developments: 4. The euro has continued its decline against the US dollar, dropping below the 1.12 threshold to reach lows near $1.1161. This represents its lowest level against the dollar in 17 months. In the United States, the dollar is being strengthened by rising Treasury yields and market uncertainty surrounding the US midterm elections. Within the Eurozone, the currency remains under pressure from escalating fiscal and political instability. In France, investor anxiety has intensified as public debt has reached nearly 119% of GDP. The widening yield spread between French and German 10-year bonds has reached approximately 146 basis points, marking its largest weekly increase in 17 years. While the French government has proposed fiscal tightening to reduce the deficit toward 5% of GDP, analysts from JPMorgan and ING suggest the euro may not yet fully reflect the deterioration of the French bond market, as skepticism remains regarding the government’s ability to implement cuts amid political fragmentation. Simultaneously, political tension in Spain has increased following Prime Minister Pedro Sanchez’s call for snap legislative elections on November 29, a move following the parliamentary rejection of key housing decrees. These converging factors—ranging from sovereign debt fears to political volatility—have triggered a sell-off in European government bonds and prompted hedge funds to reduce euro positions, fueling concerns of renewed eurozone fragmentation. ## Claims - The spread between French and German 10-year bond yields reached about 146 basis points, following its largest weekly increase in 17 years. (corroborated by 12 sources) - The euro dropped to 1.1161 against the US dollar. (corroborated by 9 sources) - Spanish Prime Minister Pedro Sanchez has called a snap election for November 29. (corroborated by 6 sources) - The euro lost 0.8% in Asian trading. (corroborated by 4 sources) - Homin Lee of Lombard Odier Singapore stated that markets reflect concerns over French government instability and fiscal erosion ahead of the 2027 elections. (corroborated by 4 sources) - JPMorgan analysts warned that the euro has not fully priced in the deterioration of the French bond market. (corroborated by 3 sources) - France's 10-year borrowing cost climbed to 4.917% on Monday. (corroborated by 2 sources) ## Timeline ### 2026-10-05: Euro hits 17-month low amid French debt and Spanish election concerns The euro hit a 17-month low against the US dollar due to French fiscal concerns and Spanish political uncertainty following Prime Minister Pedro Sánchez's call for a snap election on November 29. 38 sources. https://clstr.news/cluster/us-dollar-nears-fourth-weekly-gain-against-euro ### 2026-10-04: Euro hits lowest level against US dollar since May 2025 The euro has hit its lowest level against the US dollar since May 2025, pressured by rising US Treasury yields and political and fiscal instability within the Eurozone, particularly in France and Italy. 10 sources. https://clstr.news/cluster/euro-falls-to-lowest-levels-against-us-dollar-since-may-2025 ### 2026-10-04: Eurozone economy faces pressure from weakening Euro and high bond yields The Eurozone faces economic strain as the Euro weakens against the Dollar, driven by high energy prices, structural deficits, and geopolitical uncertainty in Ukraine and the Middle East. 2 sources. https://clstr.news/cluster/eurozone-economy-faces-pressure-from-weakening-euro-and-high-bond-yields ### 2026-09-30: Euro falls to 1.1355 US dollars per ECB reference rate The euro declined to a reference rate of 1.1355 US dollars on September 30, following recent hits to yearly lows against the greenback. 2 sources. https://clstr.news/cluster/euro-falls-to-11355-us-dollars-per-ecb-reference-rate --- Cite as: Euro depreciation against US dollar. CLSTR, https://clstr.news/situations/euro-depreciation-against-us-dollar