The euro fell to a 17-month low against the US dollar after Spain called a snap election, adding to concerns about debt in France and political uncertainty in Europe.

The single currency’s slide pushed the US dollar index to an almost 18-month high. Investors are watching an emerging financial crisis in France, where government debt worries have mounted in recent weeks.

The political turmoil comes at a delicate time for markets. Oil prices remain elevated and bond yields are stubbornly high, keeping pressure on growth across the region.

Traders are now pricing in a pause in US interest rate moves for October. The strength of the dollar reflects both European weakness and the relative safety investors see in American assets during uncertain times.

European bond markets have been nervous for weeks about France’s fiscal path. A snap election in Spain adds another layer of uncertainty for investors. Currency strategists say the euro could stay under pressure until both countries’ political pictures become clearer.