Demand for euro options protecting against further losses surged Thursday as the currency fell nearly 1% to $1.1242, described as its lowest level in 17 months and the lowest since May 2025. Three-month euro risk reversals, a measure comparing the cost of options to sell and buy euros, dropped to -1.132, their most negative reading since March 13. Three-month implied volatility, which reflects expected price swings, rose to 6.45%, its highest since April 13. Volatility also increased for the Swiss franc, pound and Australian dollar, but by substantially less than for the euro. European assets were under pressure, with bond yields in more indebted euro-zone economies including France and Italy at multi-decade highs while stocks and credit markets struggled. The euro recorded its largest one-day increase in three-month implied volatility since late January, when US President Donald Trump threatened to annex Greenland.