Euro Slides to 17-Month Low Against Dollar, Raising EU Inflation Fears

The euro fell to a 17-month low against the US dollar, Deutsche Welle reported. The decline is expected to worsen inflation across the European Union by making imports more expensive. Political uncertainties and investor concerns about French public debt are among the main factors driving the sell-off.

Analysts warn that a sustained weakness in the euro could force the European Central Bank to reassess its monetary policy. Energy and consumer goods imports would become costlier for eurozone economies.