Euro weighed down by Russia risks and French protests, denting trader sentiment.

Ukraine tensions escalate, compounded by large-scale protests in multiple French cities deepening market concerns over the country's fiscal situation, sending the euro lower against most G10 currencies. During Asian trading hours on Monday, the euro depreciated as much as 0.5% against the dollar. This followed Ukrainian President Volodymyr Zelensky accusing President Donald Trump of trying to pressure Kyiv into forcing Ukraine to surrender to Russia. Meanwhile, protests in several French cities escalated into clashes between police and demonstrators, erupting into the country's worst street violence in years. The euro fell to as low as $1.1183 before paring some losses, trading near $1.1232 around 1 p.m. Singapore time. French government bond futures fell by as much as 52 ticks, while European equity index futures dropped 0.3%. Rodrigo Catril, a strategist at National Australia Bank, said that U.S. support for Moscow has prompted Ukraine to intensify drone strikes on Russian energy infrastructure, a move that could heighten market concerns about upside risks to oil prices. He added that French protests will make it difficult for the government to implement austerity measures, and the combination of multiple factors could push the euro below $1.11. Accumulating geopolitical risks in Europe, compounded by pressure from high energy costs, pose a threat to regional economic growth. The weekend protests in France stemmed from public discontent over the high cost of living and students' complaints about the education system, but analysts said that demands for increased fiscal spending contradict the country's economic reality of urgently needing to control a rapidly rising debt burden. Over the past month, the euro has been the worst performer among all G10 currencies, falling last week to its lowest level since May 2025. Data from the U.S. Commodity Futures Trading Commission for the week ended October 13 showed that hedge funds are now the most bearish on the euro since July.