NEW YORK, Oct 6 — The euro slid yesterday to its lowest level against the dollar in 17 months on worries about France’s high debt and deficits, which have sent its government bond yields soaring.
But equities traded broadly higher despite the pressure of elevated bond yields, with the Nasdaq hitting a fresh record in New York.
The euro’s slide follows an underwhelming 2027 budget plan unveiled last week. This fanned concerns that French government spending will remain high ahead of next year’s presidential elections in which the far-right Marine Le Pen, seen as a fiscal populist, stands a chance of winning.
That has rattled bond investors at a time when interest rates — and hence borrowing costs — are rising in developed economies worldwide to combat inflation.
