France’s debt ratio reached 119.0% of GDP in the second quarter as the euro traded near $1.12, putting fiscal pressures alongside falling U.S. yields in the currency market.
FXStreet reported EUR/USD at about $1.1225 at 9:24 p.m. ET Thursday (01:24 GMT Friday), after the pair slipped below $1.1200 overnight and then recovered. The outlet said lower Treasury yields supported the euro while concerns about French public finances held back its advance. The European Central Bank’s Oct. 22 reference rate was $1.1205 per euro, a separate daily measure.
France’s National Institute of Statistics and Economic Studies (Insee) reported Maastricht general government debt of €3,595.5 billion at the end of the second quarter of 2026, up €59.6 billion from the previous quarter.
The French government’s Direction générale du Trésor projects the debt ratio will rise to 119.3% of GDP in 2026 and 121.7% in 2027. It forecasts public deficits of 5.4% of GDP in 2026 and 5.0% in 2027. The government report said the projected shortfall would still leave the debt ratio rising; a weaker economic outlook would reduce revenue and raise debt-service costs.
U.S. Treasury data showed the 10-year par yield declined to 4.96% on Oct. 22 from 5.13% on Oct. 21. The Associated Press reported that investors turned to government bonds as technology shares fell.
The U.S. Bureau of Labor Statistics said consumer prices rose 3.7% year over year in September, including a 9.1% monthly increase in gasoline prices. The Federal Open Market Committee (FOMC) raised its target range by 25 basis points to 3.75%-4.00% at its September meeting. Minutes said most participants viewed another rate increase as likely appropriate before the end of 2026. The FOMC is scheduled to meet Oct. 27-28.
