Euro’s 17-Month Low Puts France’s Fiscal Risk Back on Asia’s Radar

Singapore, 6 October 2026 – The euro’s fall to a 17-month low has brought France’s deteriorating fiscal position back into focus for Asian investors, as political gridlock and rising borrowing costs threaten to transmit pressure from sovereign bonds into currencies, banks and global risk appetite.

The common currency fell more than 0.8% to around US$1.1161 in Asian trading before trimming part of the decline. It had already lost roughly 2.5% over the previous month. The immediate pressure came from concern that France will struggle to stabilise public finances ahead of the 2027 presidential election, reducing confidence in the euro area’s second-largest economy.