Euro Falls to 17-Month Low Against the Dollar

The common currency euro experienced a drop of up to 0.8% during trading in Asian markets, falling to 1.1161 against the dollar and seeing its lowest level in the last 17 months.

Selling Pressure in Asian Markets

Short-term speculative funds taking positions in Asia sold euros in the spot market and bought dollars.

According to traders, this situation pushed the currency beyond support levels and triggered sales linked to options.

Early Election Signals in Spain

News that Spanish government officials are preparing for an early election increased political concerns in the markets.

The rejection in parliament of two emergency housing bills submitted by the government gave momentum to these speculations.

Uncertainties in French Politics

Investors are worried about the political environment and increasing instability in France ahead of next year's elections.

The risk premium demanded to hold French bonds compared to German bonds reached 152 basis points for the first time since 2011.