France's riots weaken euro and push borrowing costs to 24-year high

Violent riots across France have sent the euro lower and pushed French borrowing costs toward a 24-year high, intensifying a political and economic crisis for President Emmanuel Macron. The euro fell 0.14% to around $1.1223 on Monday as investors reacted to widespread looting and clashes. French 10-year government bond yields climbed 13 basis points to 4.9%, approaching their highest level since 2002, while the gap with German borrowing costs widened to 146 basis points. The unrest followed a weekend of protests where Limoges town hall was set on fire, over 3,000 shops were looted, and around 2,400 people were arrested. Prime Minister Sebastien Lecornu has asked local authorities to consider partial curfews and has not ruled out a state of emergency. The crisis has raised fears of spillover to other indebted eurozone countries, with Italy's bond yields also rising, while ratings agency Moody's is due to review France's credit rating on Friday.