Dollar Gains as French Budget Woes Blight Euro
The dollar pushed higher on Monday amid weakness in the euro and yen, as traders digested political tensions in France and a rebound in Treasury yields.
The Bloomberg dollar index climbed as much as 0.5%, while the common currency fell after France’s far-right party threatened to topple the government amid a stand-off over the nation’s budget. Futures for the Euro Stoxx 50 dropped 0.9%, indicating a weak open. French bond futures slipped.
The euro slipped as much as 0.6%. The single currency may be in for additional weakness after Governing Council member Martins Kazaks told a broadcaster that the European Central Bank should continue to cut borrowing costs.
Among key global events this week, Fed Chair Jerome Powell participates in a moderated discussion on Wednesday. Data due Friday will allow an assessment of the US jobs market.
In Asia, stocks rose on signs of economic stabilization in China. Manufacturing activity in the world’s second-largest economy expanded for a second straight month in November, according to a private survey on Monday.
The Chinese data also supported oil prices. The rallying greenback triggered a drop in the price of gold.
The Bloomberg Dollar Spot Index rose 0.5%. The euro fell 0.5% to $1.0523. The Japanese yen fell 0.6% to 150.64 per dollar. The offshore yuan fell 0.5% to 7.2838 per dollar.
Source: Bloomberg
