# 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 debt concerns and rising oil prices sparked…
- Keywords: euro, us dollar, france, germany, eurozone, debt yields, central bank, inflation, oil prices, fiscal risk, news, world
- Source: Dw — https://dw.com/en/euro-plummets-against-us-dollar-has-the-next-crisis-begun/a-79549031?maca=en-rss-en-all-1573-rdf
- Read time: 1 min
- Topics: euro, us dollar, france, germany, eurozone, debt yields, central bank, inflation, oil prices, fiscal risk, news, world
## Euro Hits 17-Month Low
The euro dropped 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 Surge
French 10-year government bonds rose to a 5% yield before easing slightly, signaling heightened fiscal risk for the country.
## France's Fiscal Crisis
France's debt-to-GDP ratio now stands at almost 118%, with annual budget deficits regularly exceeding 5% since President Macron took office in 2017.
## Debt Yield Gap Widens
The difference between French and German government 10-year debt yields reached its highest level since the eurozone debt crisis last week, indicating EU financial instability.
## ECB Faces Pressure
Deutsche Bank's Jim Reid warned of a 'mini-panic' as the spread between German and French bonds widened, urging the ECB to act without worsening the crisis.

> mini-panic
## Inflation and Oil Prices
A weaker euro would increase costs of imported goods, particularly oil and gas, as global commodities are priced in dollars.
## Market Concerns Intensify
Investors fear a new eurozone sovereign crisis could begin if French fiscal risks trigger broader panic in the eurozone.
## Key takeaway

Euro hit 17-month low against dollar as French debt concerns and rising oil prices sparked investor panic.