Euro falls to 3.5-month low against dollar on Europe elections
TOKYO (Kyodo) -- The euro sunk to its lowest point against the U.S. dollar in three and a half months Monday after parties skeptical about European political integration won European Parliament elections in France and Greece.
At 5 p.m., the dollar fetched 101.92-93 yen compared with 101.87-97 yen in New York and 101.72-73 yen in Tokyo at 5 p.m. Friday. It moved between 101.87 yen and 102.05 yen during the day, changing hands most frequently at 101.98 yen.
The euro was quoted at $1.3641-3643 and 139.03-07 yen against $1.3629-3639 and 138.99-139.09 yen in New York and $1.3643-3647 and 138.79-83 yen in Tokyo late Friday afternoon.
The European common currency slipped to $1.3611, the lowest it has been since Feb. 13, after the elections on Sunday. The election results will make it harder for the European Union to act decisively in risk events, said Yuji Saito, executive director of foreign exchange at Credit Agricole Corporate & Investment Bank in Tokyo.
The Ukrainian election Sunday had a limited impact on the euro. Billionaire and former foreign minister Petro Poroshenko was picked as the country's new president, even as voting in the eastern regions of Donetsk and Luhansk was disrupted by pro-Russian separatists.
While Poroshenko's victory dispelled market worries of an election runoff that would prolong political uncertainty in the country, "It's still unclear if the new government will be a stable one in the face of pro-Russian forces," said Yuzo Sakai, manager of foreign exchange business promotion at Tokyo Forex & Ueda Harlow.
The dollar-yen pair moved little through the day, caught between buying of the safe-haven yen over the uncertainty in Ukraine and selling of the Japanese currency on a strong performance by Tokyo stocks, dealers said.
European Central Bank President Mario Draghi speaks later Monday in Portugal, ahead of the ECB's policy meeting on June 5 in which the bank is expected to add to its easing measures.