The euro remained near a 17-month low on Tuesday, October 6, as political uncertainty and concerns about public finances pressured the single currency. Reuters reported that it traded around $1.1219 in Asia after reaching its weakest level since May 2025 during the previous session.
France’s high debt levels and political gridlock were among the concerns weighing on sentiment. An upcoming snap election in Spain added another source of uncertainty for investors assessing the euro area’s outlook.
The dollar, meanwhile, continued to receive support from rising US Treasury yields. Currency markets respond to the relative attraction of assets across countries, so movements in borrowing costs can affect demand for both dollars and euros.
The euro had also lost ground against sterling, according to the report. That suggests the pressure was broader than its exchange rate against the dollar alone.
The figures describe the market at the time of Tuesday’s report. Further budget developments and economic data could alter sentiment, while the immediate focus remains on whether European governments can address fiscal concerns without deepening political uncertainty.
