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17/06/24
118
USD Lower Versus Euro on Subsiding Political Jitters in Europe
On Monday, the US dollar was slightly lower against the euro, as the common currency rebounded from the over one-month lows reached last week driven by Europe’s political turmoil.
The euro was 0.1% higher at $1.0718, recovering from its 6-week low at $1.066775 hit last week after news of France’s snap parliamentary election.
European markets have been pressured by President Emmanuel Macron calling for a snap election after his ruling centrist party was trounced by the eurosceptic National Rally’s Marine Le Pen in the parliament elections in Europe.
Investors have been evaluating the risk of a budget crisis in the euro area, as leftist and far-right parties gain steam before France’s snap parliamentary election, putting pressure on Macron’s centrist administration.
Over the weekend, Le Pen attempted to allay some of these fears in an interview with Le Figaro and said she wouldn’t seek Macron’s resignation and that she respected institutions.
Policymakers at the European Central Bank are not planning to discuss emergency buying of French bonds, even after a brutal sell-off in the French financial markets late last week.
The U.S. dollar index, which measures its strength against 6 other major currencies, was steady at about 105.52, about the highest since May 2.
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