Euro Weakens as Violent Protests Hit Europe

The euro fell as much as 0.5% to $1.118 on Monday before recovering some losses, as widespread protests across France and other European countries escalated into violent clashes between police and demonstrators over the weekend. Unrest spread across major cities in Belgium, Italy, and Portugal, weighing on sentiment toward the common currency. Meanwhile, Moscow and Kyiv continued targeting energy infrastructure, with Ukrainian strikes igniting an oil export terminal and a storage depot in St. Petersburg on Sunday, adding to geopolitical uncertainty. Rising energy costs threatened to weigh on economic growth while sustaining inflationary pressures across Europe, leaving the euro vulnerable to further declines if tensions intensify. The currency has remained under pressure since September amid growing concerns over France’s fiscal outlook and the European Central Bank’s cautious stance on interest rate increases.