1241 GMT - Political instability and rising debt costs in Europe leave the euro vulnerable to further falls, XS.com's Simon-Peter Massabni says in a note. European fiscal stability faces growing headwinds as the WSJ reports that France is considering issuing more short-term debt after foreign investors showed reluctance to hold longer-dated paper, he says. The report "indicates that market participants fear deep political paralysis in Paris will prevent the government from executing necessary public spending cuts," he says. Persistent energy inflation risks stemming from the Middle East conflict also weigh on the euro, he says. The euro falls 0.1% to $1.1184, having hit $1.1160 on Monday, its lowest level in more than 16 months, LSEG data show.