Euro Falls to 17-Month Low as Dollar Surges on French Debt Fears

The euro dropped to its lowest level against the dollar in 17 months in the session through October 5, as investors grew more anxious about France's public debt load. High energy prices across the eurozone added further pressure on the currency, according to the Financial Times. The move was part of a broader dollar surge that also weighed on Asian currencies, which weakened across the board in the same session. The pressure on the euro has been building as traders focus on France's fiscal trajectory rather than purely on European Central Bank policy expectations. What remains unresolved is whether French political developments over public spending will stabilize or worsen the debt outlook in the coming weeks, a factor traders are watching closely alongside the dollar's broader strength.