# Euro Plummets as French Debt Rattles Markets

> French debt fears trigger euro's 17-month low against dollar.
- Title: Euro Plummets as French Debt Rattles Markets · Dw | Shortify
- Summary: French debt fears trigger euro's 17-month low against dollar. Euro hit 17-month low against dollar as French government bond yields rose to 5% amid concerns…
- Keywords: euro, dollar, france, germany, eurozone, debt, government bonds, fiscal risk, inflation, central bank, eurozone debt crisis, bond yields
- Source: Dw — https://dw.com/en/euro-plummets-against-us-dollar-has-the-next-financial-crisis-begun/a-79549031?maca=en-rss-en-all-1573-rdf
- Read time: 1 min
- Topics: euro, dollar, france, germany, eurozone, debt, government bonds, fiscal risk, inflation, central bank, eurozone debt crisis, bond yields
## Euro Hits 17-Month Low
The euro fell to a 17-month low against the dollar on Monday, reaching $1.12 (€0.99) as concerns over French debt compounded global market worries.
## French Debt Yields Rise
French 10-year government bonds rose to a 5% yield before easing slightly, signaling heightened fiscal risk for the country.
## France's Fiscal Challenges
France's debt-to-GDP ratio stands at almost 118%, with annual budget deficits regularly exceeding 5% since President Macron took office in 2017.
## German-French Yield Gap
The difference between French and German government 10-year debt yields reached its highest level since the eurozone debt crisis last week.
## ECB Pressure to Act
Deutsche Bank's Jim Reid warned of a 'mini-panic' as the spread between German and French bonds widened, urging the ECB to prevent market panic.

> mini-panic
## Potential Eurozone Crisis
Investors fear French fiscal instability could trigger a new eurozone sovereign crisis, with inflation and energy prices rising further.
## Key takeaway

Euro hit 17-month low against dollar as French government bond yields rose to 5% amid concerns over fiscal stability and potential eurozone crisis.