Euro falls, set for fifth straight weekly drop as oil prices rise
Benchmarks Nifty23,014.80392.1FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.52 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.82 % Invest NowEnter search…
The euro has experienced a significant drop as concerns about France's public debt continue to affect investor confidence. Global bond markets have stabilized following US President Donald Trump's remarks on potential military action against Iran. Oil prices fluctuated significantly, impacting market dynamics and investor sentiment. US consumer sentiment has worsened amid rising living costs attributed to the ongoing Middle East conflict.
Listen to this article in summarized format
Loading...×The euro was poised for a fifth straight weekly drop on Friday, with early gains fading as oil prices erased earlier declines, but recent selling pressure was muted as France's beleaguered bond market steadied.The euro zone's currency hit a 17-month low of $1.1161 on Monday as investors worried about France's record public debt and the difficult political path to budget cuts, in contrast with a robust-looking US economy and currency.
The dollar index, which measures the greenback against a basket of currencies, rose 0.13% to 102.25. The index was up about 0.3% on the week and on track for a fourth straight weekly gain, its longest run since May 2025.
The euro was last down 0.1% at $1.1198, and off about 0.5% on the week as it was poised for its longest streak of weekly declines against the dollar since the start of 2025.
Risk premiums on French and Italian government debt were on track for a weekly decline after jumping in late September, as investors looked for fresh developments before demanding higher compensation for fiscal and political risks.
Live Events
Trump Signals No Iran Attack
Global bond markets had calmed earlier on Friday as oil prices fell after US President Donald Trump said that the US would not attack Iran before US midterm elections on November 3 and added that there had been productive talks with Tehran over the war."As it stands right now, you have a confluence of factors - you have higher oil prices, you have the issue in France, so it is really tough to say what is moving the market more than the other," said Eugene Epstein, head of trading and structured products at Moneycorp in Stamford, Connecticut.
"But practically speaking, I'd say today is in a relative holding pattern, everyone is just waiting for all the Fed speak to make its way through, because certainly you can see that the sensitivity of the dollar is high to the entire range of Fed speakers now," Epstein said.
Crude prices moved off their lows, however, as British navy-affiliated agency UKMTO said a vessel was struck by an unknown projectile 13 nautical miles west of Al Jazeera in the United Arab Emirates.
US crude rose 0.6% to $92.04 a barrel after falling as low as $90.01 and Brent advanced to $104.88 per barrel, up 0.58% on the day, after declining to $102.33.
Bond yields around the world have climbed in recent weeks due to expectations of central bank rate hikes as well as concerns about government finances.
Central Bank Policy In Focus
But expectations for a rate hike from the Fed at its policy meeting later this month remain subdued, with markets pricing in a 19.4% chance for a rate hike of at least 25 basis points, according to CME FedWatch, even as recent economic data has pointed to persistent inflation pressure. However, investors are pricing in an 85.8% chance for a hike at the central bank's December meeting.On Friday, the University of Michigan's Surveys of Consumers showed US consumer sentiment slumped further in early October as the rising cost of living because of the Middle East conflict soured households' views of the economy.
While many Fed officials have indicated more rate hikes will be needed to curb inflation, others have pushed back on the need for immediate hikes, and suggested the Fed should be patient and flexible in deciding the rate path.
French debt has been under pressure as politicians struggle to curb the budget deficit ahead of a divisive election in 2027. The calling of a snap election in Spain earlier in the week also added to the pressure on the euro.
Sterling gained 0.08% to $1.3235 but was on track for a seventh straight week of declines, its longest stretch since November 2024.
Against the yen, the dollar strengthened 0.25% to 158.25. The Japanese currency was on pace for its fourth straight weekly decline against the greenback, down about 0.2% on the week.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onEuro fallsoil prices riseUS dollar indexFrench government debtcentral bank rate hikes
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onEuro fallsoil prices riseUS dollar indexFrench government debtcentral bank rate hikes
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth EditionThe ABCD of the US mid-term elections – Part 1: Why it matters across the globe
Onion inflation at 108%? Yes, but not really. What is different this time?
Curbing rupee bets: What the RBI’s new rules mean for the hedge-now-or-wait question
Brinjal, buffalo, bacteria: Inside India’s pay-for-nature system
Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projects
The NBFC saga - Part 3: How one default in 2018 changed the way RBI reads risk
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
