(Reuters) – The euro is on track for its biggest monthly decline since January as political uncertainty weighs on France’s election, while the dollar jumps to a near four-decade high against the yen ahead of key inflation data.
At 10:20 the euro fell by 0.08% to 1.0691 dollars and is about to close the month with a drop of 1.33%, the most significant since January, when the decline was 1.99%.
The risk premium on French government bonds rose to its highest level since the 2012 euro zone crisis ahead of the first round of early elections on Sunday, as investors expect a new government led by a far-right coalition or far left increases public spending.
The yen stood at 160.9 after hitting 161.27 per dollar, its weakest level since 1986.
The dollar index advanced 0.12% to 106.028 after hitting an eight-week high on Wednesday of 106.13. It’s up 1.5% in the quarter so far.
The yen posted its worst performance of the quarter, down 6% against the dollar since the end of March and falling more than 12% in 2024.
Against the euro, the Japanese currency is at 172.04, after hitting a record low of 172.38 per euro earlier in the day.
(Translated by Laura Contemori, edited by Antonella Cinelli)
