The euro is down 0.6% against the dollar, trading just below $1.12 on continuing worries about France's fiscal health.

If the European common currency ends today at that level, it would be its lowest settle since May 16, 2025, according to Dow Jones Market Data. The euro briefly was briefly lower on Monday but recovered to above $1.12 before the close.

Given the risk of foreign investors dumping French government bonds, "downside risks are set to prevail" in the euro-dollar exchange rate, MUFG analyst Derek Halpenny wrote early Wednesday.

French government bond yields have shot higher in recent days as investors have increasingly balked at the country's struggles to rein in public spending. That's hit the euro, which has weakened as investors dial back expectations for interest-rate hikes from the European Central Bank.