Euro falls to 17-month low against dollar amid political uncertainty in Spain and France

The euro dropped to its lowest level in 17 months against the US dollar on October 5, 2026, as investors reacted to rising political instability in Spain and France, including concerns over government stability and policy direction.

Why it matters. The euro's decline reflects broader market sensitivity to political risk in key eurozone economies, affecting currency valuations, trade dynamics, and investor confidence in the region.