14:24 - 13.10.2026

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October 13, Fineko/abc.az. The Euro has slumped to 1.11 against the US Dollar, reaching its lowest level since May 2025 as escalating fiscal and political uncertainties across Europe weigh heavily on the single currency.

Having reached a peak of 1.21 in January, the euro has accumulated a year-to-date loss of approximately 5%.

The primary catalyst for the decline stems from France, the Eurozone's second-largest economy, where the public deficit reached 5.8% of GDP and total nominal public debt hit a record €3.596 trillion (119% of GDP). French 10-year bond yields surged toward the 5% threshold, reaching levels not seen since 2002. Snap elections called in Spain and persistent sticky inflation have further constrained the European Central Bank (ECB), prompting markets to scale back expectations for upcoming rate hikes.