Euro eases from five-month high

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The euro eased in Asia today, roughly 24 hours after touching its highest level in just over five months after the first round of voting in the French election.

Markets have started to price in an Emmanuel Macron presidency, with the centrist candidate seen as a better outcome for the single currency than Marine Le Pen, the far-right leader who is anti-EU. The presidential election is slated for May 7.

The euro eased 0.1 per cent to $1.0858 in Asia, having ended 1.3 per cent higher yesterday.

The yen was 0.1 per cent weaker at ¥109.92 per dollar, after a 0.6 per cent drop yesterday. The Japanese currency was the worst-performing major currency against the euro on Monday as the outcome of the French vote left investors with diminished demand for haven assets.

The dollar index, a measure of the US currency against a basket of global peers, was fractionally higher today at 99.135.

The Australian dollar was 0.1 per cent lower at $0.7561 despite low trading volumes owing to a public holiday in the domestic market.

The outcome of the French vote also led to some dramatic moves in the eurozone bond market on Monday. The yield on French government’s 10-year bond tumbled 11 basis points to 0.82 per cent, while Spanish, Italian and German yields also slipped. Yields move inversely to price.

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