Euro Drops to 17-Month Low of 1.1161 Amid European Political and Fiscal Turmoil

The euro dropped as much as 0.8% to touch a 17-month low of 1.1161 against the US dollar during Asian trading on Monday, dragged down by mounting European political and fiscal instability. Selling by fast-money funds triggered automated options-related stop losses, while French bond futures slipped 0.13% and France's 10-year yield touched a multi-year high of 4.99%. The currency pair has declined over 4.67% from its September peak, pressured further by sluggish Eurozone growth projected at 0.9% and broader dollar strength that pushed the US Dollar Index up 0.47% to 102.37.