FXStreet put the euro near $1.1235 against the dollar in early Asian trading Thursday, Oct. 22, a day after France’s 10-year yield briefly moved above 5%, bringing the government’s budget plans into market focus.
Reuters reported that the yield reached 5.002% at 5:14 a.m. ET (09:14 UTC) Oct. 21, then eased below 5%. The outlet said the yield had not touched that level since July 2002. The European Central Bank’s daily reference rate put the euro at $1.1234 on Oct. 21, up from $1.1215 the day before. France’s debt agency, Agence France Trésor (AFT), recorded a separate daily TEC 10 reference of 4.99% for Oct. 21.
The latest figures extend EconoTimes’ earlier coverage of the euro as French bond spreads widened. The ECB rates are daily reference values; they are distinct from FXStreet’s intraday currency quote and Reuters’ reported yield peak.
France’s National Assembly lists the 2027 budget bill as filed Oct. 1. Lawmakers examined its first part Oct. 13-19, and the Assembly schedule says debate resumes Oct. 27 and runs through Nov. 2. A vote on that part is scheduled for Nov. 3.
The government’s 2027 target is a public deficit of 5% of gross domestic product. AFT forecasts a €339.7 billion state financing requirement and €72.9 billion in debt service, compared with €62.6 billion for 2026. The agency puts the financing requirement €28 billion above its updated 2026 figure, largely due to €19.4 billion in additional medium- and long-term debt redemptions. It also cites the need to replace €6.1 billion in European recovery-facility financing received in 2026.
The Associated Press reported that demonstrations followed violence and looting on Oct. 17, with further protests planned for Thursday and Saturday. John Hardy, Saxo’s global head of macro strategy, told FXStreet: “The French debt situation isn't tractable.” He said fiscal adjustments were needed.
The Federal Reserve is scheduled to meet Oct. 27-28, and the ECB’s meeting is set for Oct. 28-29; the calendars overlap on Oct. 28. The National Assembly’s budget vote is scheduled for Nov. 3.
