Euro’s Dollar Resilience Tested by Energy Crises and Political Uncertainty

Euro faces pressure from energy shocks and political risks as it struggles to maintain value against the dollar.

September 29, 2026 One Min Read

POLICY WIRE — LONDON, United Kingdom — The euro has been under pressure this month, with its value slipping to two-month lows against the U.S. dollar due to a combination of global energy disruptions and rising political uncertainty in Europe.

The currency had previously approached $1.20 in August but has since dropped nearly 2%, falling just below $1.14 as of late September. Analysts point to energy market volatility and geopolitical tensions as key factors influencing the euro’s performance amid broader economic challenges.

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Recent developments in the Middle East have intensified concerns over energy supply chains, causing oil and gas prices to climb and contributing to inflationary pressures across the region. Meanwhile, the European Central Bank grapples with stagnant growth and rising costs, adding to the euro’s vulnerability in the face of strong dollar demand.

Reporting by Policy-Wire (PW)

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