The greenback is affected by US inflation data for the month of May.
He euro rises this Monday, after the historic victory of the extreme right in the first round of the French parliamentary elections fell slightly below some expectations, leaving the final result subject to agreements between parties before the second round next weekend of week.
For its part, the Yen hovered around 38-year lows after it was revealed that the Japanese economy contracted more than initially expected in the first quarter, putting traders on alert for the possibility of intervention to shore up the currency.
The far-right partyMarine Le Pen’s National Regroupment (RN) won the first round of French parliamentary elections by a wide margin on Sunday, but analysts said he won a smaller share of the vote than some polls had initially projected, triggering a rally in stocks and bonds.
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He euro gained 0.3%, to $1.0748, after having risen more than 0.5%to a two-week high. The currency has lost about 1.3% since France’s far-right triumphed in European parliamentary elections in early June, prompting President Emmanuel Macron to call early legislative elections.
“They actually performed a bit worse than expected,” said Carol Kong of Commonwealth Bank of Australia. “We might have less fear of unsustainable expansionary fiscal policy if the far-right party did a bit worse.”
How other currencies work
The euro’s rise caused the dollar to fall slightly against a basket of six major currencies. The greenback was hurt by data on Friday showing that the dollar was down 1.5%US inflation cooled in Mayreinforcing expectations that the Federal Reserve will begin cutting interest rates at the end of the year.
He dollar index fell 0.1%, to 105.65 units, and the pound sterling rose 0.2% to $1.2672.
The yen was down 0.1% at 161.09 per dollar, just shy of the 37-and-a-half-year low of 161.27 reached on Friday. In so far this year, The Japanese currency has fallen by more than 12%keeping investors on high alert for the possibility that Japanese authorities will intervene to shore up the currency.
Source: Ambito
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