The euro fell on Friday and was set for a weekly loss against the dollar and yen, as a sell-off in French government bonds pushed France’s debt risk premium to its highest since the 2011 eurozone sovereign debt crisis. Concerns over unrest and budget problems in France weighed on the currency; the euro dropped to US$1.1191 and touched 175.08 yen, its lowest since October 2025, while Moody’s threatened a downgrade but did not act on Friday. The yen gained safe-haven flows after Thursday’s AI stock sell-off, heading for a weekly gain of around 0.7% against the dollar. The dollar index rose 0.25% to 101.82. Traders still see an 81% chance of a Fed hike in December, versus 66% for the ECB and 61% for the BOJ.
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Related tickers and likely impact
EUR/USD
▼ Likely negativeRelevance: high
| Market | Currencies |
|---|---|
| Close on 10/23/2026 | 1.12044 |
| Change that session | -0.11% |
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 210.96 |
| Change that session | -0.59% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/23/2026 | 704.40 |
| Change that session | -0.01% |
USD/JPY
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/23/2026 | 156.843 |
| Change that session | +0.05% |
DXY
▲ Likely positiveRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/23/2026 | 101.74 |
| Change that session | +0.11% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Euro sinks on French debt worries , yen gains for week on AI rout
The euro fell on Friday (Oct 23) and was on track for a weekly loss against the US dollar and the yen, after a selloff in French government bonds pushed France's debt risk premium to its highest since the 2011 euro zone sovereign debt crisis. Concerns over unrest and worsening budget problems in France weighed on the currency, as France deployed 70,000 police for Saturday's protests and Moody's was due to review the country's debt rating later that day. The euro was last at US$1.1191, set to end the week 0.43 per cent lower, and touched 175.08 yen, its lowest since October 2025. The yen gained for the week on safe-haven flows following Thursday's AI stock selloff, while traders await next week's Fed, ECB and BOJ meetings, all expected to leave rates unchanged.
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EUR/USD fell on Friday as reports tied the euro's weakness to fiscal and political strains in France. FXStreet's snapshot at 18:01 UTC on Oct. 23 showed the pair at 1.1190, down 0.22% on the day. France's general government debt reached €3,595.5 billion at the end of Q2 2026, or 119.0% of GDP, up from 117.5% in Q1, according to the National Institute of Statistics and Economic Studies. Reuters said investors are demanding a risk premium on French debt not seen since the 2011 eurozone sovereign-debt crisis, while Moody's maintained France's rating and negative outlook. Commerzbank expects the Fed and ECB to hold rates this month, with 25-basis-point increases in December if tensions in French bond markets do not intensify, a forecast rather than a policy commitment.
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- France is getting its credit rating reviewed by Moody's. What to expect as French debt turmoil spills overseas.
Moody's will update its credit rating on France's debt after U.S. markets close on Friday.
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