Euro falls to $1.1299 amid inflation and political uncertainty
The euro just dropped to its lowest point against the US dollar in almost a year and a half, now trading at $1.1299.
This slide comes as Europe faces rising oil prices, stubborn inflation, and political uncertainty with the French election coming up and pressure on Germany's leadership.
Even though the European Central Bank has been raising interest rates to fight inflation, the euro still fell nearly 2.5% in September alone.
Energy reliance weakens euro, dollar strengthens
Experts say Europe's heavy reliance on energy imports and shaky politics are dragging the euro down.
As Rabobank head of FX strategy Jane Foley puts it, "This growth risk has been hanging over the euro."
Meanwhile, the US dollar is getting stronger thanks to rising Treasury yields, a trend that's making global markets pay attention again, just like back in 2022.