Euro hits 17-month low versus dollar on French deficit concerns
The euro declined to a 17-month low against the dollar on Monday. Concerns over France's budget deficit and a significant bond market sell-off last week have fueled fears of a potential sovereign debt crisis in the Eurozone.
The euro fell to a 17-month low against the dollar on Monday as worries over France’s ability to rein in its budget deficit, along with last week’s sharp bond sell-off, revived fears of a return of sovereign debt crisis dynamics in the euro zone. French government bonds have come under pressure as investors gauge the outlook for France’s fiscal position and broader market stress in the region.