French run-off bolsters euro, weakens yen

The prospect of a run-off election between Emmanuel Macron and Marine Le Pen in France has delivered a serious boost to the eurozone’s single currency and sapped some of the strength from Japan’s yen in early Asia trading.

The euro is 1.4 per cent stronger against the dollar to $1.0877, having surged as much as 2 per cent – the highest level since November 10 – as it became clear that Mr Macron would advance to the election’s final round in May. Opinion polls have suggested he would win in a contest against Ms Le Pen.

In early Asia Pacific trading Japan’s yen is down 0.9 per cent against the dollar at ¥110.04, its weakest level since April 11, as the election outcome has taken some of the shine off the haven currency for investors. Australia’s dollar is up 0.2 per cent at $0.7557.

The election outcome is also benefiting eurozone-adjacent currencies: Sweden’s krona is up 1.8 per cent against the dollar at 8.8351, Norway’s krone has climbed 1.7 per cent to 8.5232, and the Danish krone has gained 1.4 per cent to 6.8393. The Swiss franc is 0.3 per cent stronger at SFr0.9927.

In emerging markets currencies, South Africa’s rand has gained 0.9 per cent to 12.9961 per dollar, while Mexico’s peso has climbed by the same amount and is now 18.6393 per dollar.