The euro fell to a three-month low after Socialist Francois Hollande was elected president of France and as Greek voters flocked to anti-bailout parties, stoking concern austerity efforts in Europe may be derailed.
The 17-nation currency slid for a sixth day, its longest series of losses since September 2011, after German Chancellor Angela Merkel’s party had its worst election result in more than half a century in the state of Schleswig-Holstein. The yen and the dollar rose versus most of their peers as Asian stocks extended a global rout, boosting demand for haven currencies.
“There are major concerns about the euro,» said Marito Ueda, senior managing director in Tokyo at FX Prime Corp., a currency margin company. «What’s common to both Greek and French voting is that people aren’t feeling good about austerity measures, which are the crux to a resolution of Europe’s debt problems.”
The euro declined to $1.2955, the weakest since Jan. 25, before trading at $1.2986 as of 6.45 a.m. in London, 0.8 percent below last week’s close in New York. It dropped 0.9 percent to 103.59 yen. The US dollar was at 79.77 yen from 79.85. [Bloomberg]