The escalation of the situation in Ukraine, compounded by large-scale protests in many parts of France deepened market concerns about the country's financial situation, and the euro weakened against most G10 currencies. The euro depreciated 0.5% against the US dollar during Monday's Asian trading session. Earlier, Ukrainian President Vladimir Zelensky accused President Donald Trump of trying to pressure Kyiv to force Ukraine to surrender to Russia. Meanwhile, protests in several French cities turned into clashes between police and demonstrators, breaking out of the country's worst street violence in years. The euro fell to a minimum of $1.1183, then the decline narrowed slightly. It traded around $1.1232 at around 1 p.m. Singapore time. The biggest decline in French treasury bond futures reached 52 quoted units, while European stock index futures fell 0.3%. Rodrigo Catril, a strategist at the National Bank of Australia, said that US support for Moscow has prompted Ukraine to step up drones crackdown on Russia's energy infrastructure, and this move may heighten market concerns about rising oil prices. He added that the French protests will make it difficult for the government to implement austerity policies, and a combination of factors may push the euro below $1.11. Europe's cumulative geopolitical risks, compounded by high energy costs, pose a threat to regional economic growth. The weekend protests in France stemmed from public dissatisfaction with the high cost of living and complaints from students about the education system. However, analysts said that the demand for increased financial allocations contradicted the country's urgent need to control the rapidly rising debt burden. The euro underperformed among all G10 currencies over the past month, and last week it fell to its lowest level since May 2025. Data from the US Commodity Futures Trading Commission for the week ending October 13 shows that hedge funds are currently bearish on the euro to the highest level since July.

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