Euro Hits 17-Month Low as Spain Calls Snap Election and France Faces Fiscal Doubts
The euro fell to its lowest point against the U.S. dollar in 17 months on October 5, 2026, driven by political instability in Spain and fiscal concerns in France. Spanish Prime Minister Pedro Sánchez called a snap election for November amid housing protests, while France’s 2027 budget plan is viewed as insufficient to resolve structural debt issues. Investors are worried about the eurozone’s combination of rising inflation, high borrowing costs, and weak growth.