Ankara:The euro fell to its lowest level against the US dollar since March 2025, driven by worries over European public finances and political instability affecting investor confidence.

According to Anadolu Agency, the euro traded 0.6% lower at $1.1164 as of 0700GMT on Monday. The decline was influenced by volatility in French government bonds, with the gap between French and German 10-year borrowing costs widening to 159 basis points before closing at around 141 basis points.

France's 10-year bond yield briefly neared 5%, indicating increased investor demand for compensation due to concerns about France's fiscal outlook and political uncertainty ahead of the 2027 presidential election. These worries have sparked fears of potential economic strains spreading to other heavily indebted eurozone countries.

The strengthening of the US dollar also contributed to the euro's decline, despite weaker-than-expected US employment data and reduced expectations for a Federal Reserve interest-rate hike this month.