Euro rises despite political tensions in France and yuan weakness

On the other hand, he has arrived Yuan China hit a 13-month low on the possibility of tariff hikes and weakness in the Chinese economy.

And he withdrew Yen The Japanese, which has risen about 4.5 percent in the past two weeks, fell slightly against the greenback but remained near six-week highs as traders grew more confident that Japan could raise interest rates this month.

He was Euro The weakest of the 10 major currencies during November and this month opened last night down 0.7 percent to trade around $1.0487 in early Asian trade, as the French government heads toward collapse over a budget impasse.

He is facing the French Prime Minister Michel Barnier The vote of no confidence was passed on Wednesday, following strong opposition across the political spectrum to his budget, which includes significant tax increases and spending cuts aimed at reforming the country’s fragile public finances.

Last month, the euro lost 3 percent against the dollar and more than 1 percent against the pound and the Swiss franc.

He usually suffers Dollar From seasonal weakness in December, as companies tend to buy foreign currencies, but this year traders are cautiously eyeing the next administration of US President-elect Donald Trump and keeping the dollar stable.

In recent days, Trump has threatened the BRICS group with punitive tariffs if it does not adhere to the dollar as a reserve currency.

In turn, the Chinese yuan was exposed to a wave of selling on expectations that Trump would impose more tariffs. Improved US manufacturing data and a drop in Chinese bond yields to unprecedented levels pushed the currency to 7.3 yuan per dollar for the first time since then. last November.

China set the yuan’s trading range at its lowest levels in more than a year, with traders rushing to sell the currency at 7.2996 to the dollar.

get up australian dollar 0.4 percent to 0.6503 US dollars, recovering part of the losses recorded in the previous session, which amounted to 0.7 percent.

The yen hit its strongest level since late October at 149.09 against the dollar on Monday, and hit 149.89 in late trade, leaving the greenback up 0.2% against the greenback on the day.

Development in France

I was a witness France In recent months, political unrest has affected financial markets. In June 2024, the dissolution of the French parliament sent European financial markets into turmoil and the CAC 40 index fell by 4 percent at the time.

The left’s surprise victory in the July 2024 legislative election sent the euro down 0.3 percent in early Asian trade at the time.

In addition, France is facing economic challenges, having lowered its forecast for economic growth in 2024 to 1 percent, and called for a ten billion euro cut in government spending.

These political and economic developments in France affected investor sentiment and led to instability in financial markets.