Euro slips to 17-month low against dollar
In short
The euro fell to $1.1161 against the dollar in Asian trading, its lowest level since May 2025, according to Reuters as cited by TASS and Vedomosti. By 13:29 Moscow time it was trading at $1.1205 on Forex, down 0.41% from the previous day, Vedomosti reported. RBC attributed the slide to financial and political risks in Europe, while Vedomosti pointed to concerns over French public finances, the French bond selloff and the Federal Reserve's September rate increase.
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The euro fell to a 17-month low against the dollar, dropping to $1.1161 in Asian trading — its weakest level since May 2025, Reuters reported, as cited by TASS and Vedomosti. By 13:29 Moscow time the European currency was trading at $1.1205 on Forex, down 0.41% from the previous day, Vedomosti reported. [ 2 , 3 ]
Vedomosti said pressure on the euro intensified on investor concerns about the state of France's public finances and a selloff of French government bonds. The yield spread between French and German government bonds reached about 150 basis points on 2 October, the widest since the eurozone debt crisis in 2011, according to the outlet. Analysts cited by Vedomosti linked the worsening mood to expectations of higher interest rates, growing political uncertainty ahead of France's 2027 elections and doubts about Paris's ability to reduce its budget deficit. Vedomosti also reported that Bloomberg tied the euro's decline to Spanish Prime Minister Pedro Sánchez's call for early elections. [ 3 ]
Additional pressure on the euro came from the Federal Reserve's September rate increase, Vedomosti reported. The dollar index, which measures the US currency against a basket of six major currencies, rose to 102.53 points — its highest since April 2025, the outlet said. [ 3 ]
RBC reported the euro had fallen to its lowest level in 17 months, attributing the move to financial and political risks in the region. It did not give a specific rate or name the drivers. [ 1 ]
On the domestic side, Vedomosti reported that the Bank of Russia set the official dollar rate for 3 October at 83.48 roubles; the euro fell 0.21 rouble to 94.32 roubles and the yuan rose 0.03 to 12.43 roubles. [ 3 ]
Why it matters
The euro-dollar rate is the world's most watched currency pair, and a 17-month low affects import costs and cross-border pricing well beyond Europe. The Bank of Russia's official euro and dollar rates cited by Vedomosti show the move feeding directly into the rouble's daily fixing. Beyond the level itself, the documents give no basis for reading wider consequences for Russia, which was not described as a cause of the move.
Key facts
- The euro fell to $1.1161 against the dollar, its lowest level since May 2025. [ 2 , 3 ]
- RBC described the euro's rate as a 17-month low, its lowest since May of last year. [ 1 ]
- As of 13:29 Moscow time the euro was trading at $1.1205 on Forex, down 0.41% from the previous day. [ 3 ]
- Vedomosti said pressure on the euro intensified on investor concerns over French public finances and a selloff of French government bonds. [ 3 ]
- The yield spread between French and German government bonds reached about 150 basis points on 2 October, the widest since the 2011 eurozone debt crisis, according to Vedomosti. [ 3 ]
- Vedomosti reported that the Fed's September rate increase added pressure on the euro and that the dollar index rose to 102.53, a high since April 2025. [ 3 ]
- The Bank of Russia set the official dollar rate for 3 October at 83.48 roubles; the euro fell 0.21 rouble to 94.32 roubles and the yuan rose 0.03 to 12.43 roubles. [ 3 ]
Confirmed by several sources
Still unclear
- What drove the euro's fall RBC cites only general “financial and political risks in the region”. The specific drivers — French public finances and the French bond selloff, expectations of higher rates, uncertainty before France's 2027 elections, doubts over Paris cutting its budget deficit, the Fed's September rate rise and Spain's call for early elections — appear only in Vedomosti, so they rest on a single outlet.
- Whether $1.1161 was the day's low TASS and Vedomosti describe the $1.1161 level during the Asian session, but Vedomosti's later price of $1.1205 at 13:29 Moscow time is the most recent figure given; the documents do not say where trading went afterwards.
What local media are saying
Timeline, local time
- RBC reports the euro has fallen to a 17-month low against the dollar. [ 1 ]
- TASS, citing Reuters, reports the euro fell to $1.1161 during the Asian session, its lowest since May 2025. [ 2 ]
- The euro is trading at $1.1205 on Forex, down 0.41% from the previous day, according to Vedomosti. [ 3 ]
- Vedomosti publishes its report on the euro's 17-month low and the factors behind it. [ 3 ]