The euro weakened against major currencies on Monday as violent protests across France raised concerns about political stability and economic growth.
The European currency dropped 0.2% to $1.1218 against the US dollar. Meanwhile, the dollar strengthened slightly as investors reacted to the growing unrest.
Violent Protests Shake France’s Economy
Thousands of protesters took to the streets over rising living costs, poor public services, and economic difficulties.
Demonstrations turned violent in several cities, including Paris, Lyon, and Marseille.
Protesters clashed with police, while some groups damaged shops, vehicles, and public buildings.
French President Emmanuel Macron condemned the violence and called for public order.
Meanwhile, Prime Minister Sebastien Lecornu proposed limited curfews in affected areas to restore security.
Euro Falls as Investors Fear Political Instability
The unrest increased pressure on France’s financial markets.
French government bond yields rose as investors demanded higher returns amid growing uncertainty.
The euro also fell to its lowest level against the British pound in 16 months.
Analysts warned that continued political instability could weaken confidence in European markets.
However, the currency’s decline remained relatively limited compared with earlier market losses.
Global Markets Monitor France Crisis
Rising energy prices have added further pressure to the European economy.
Investors are also watching France’s budget problems and upcoming economic decisions.
Meanwhile, the European Central Bank and US Federal Reserve face important interest rate decisions.
Financial experts believe prolonged unrest could increase market uncertainty.
The situation has raised concerns about France’s economic outlook and possible effects across the eurozone.
Investors now await clearer political and economic developments.
