The European Single Currency, euro edged 0.1 percent lower at $1.1696 EUR=EBS, on Tuesday, June 26, extending its recovery from its 11-month low of $1.1508 touched on Thursday.
Still, the single currency remains vulnerable to regional political instability as German Chancellor Angela Merkel faces pressure to deal with the migration issue that has divided Europe and threatened her own government.
“The ongoing political angst in Europe also has contributed to risk-off market sentiment,” said Kengo Suzuki, chief forex strategist at Mizuho Securities.
Meanwhile, the pound fell half a percent to $1.3208, still above its 7-month lows of $1.3102 plumbed last week. Sterling also gave up its gains versus the euro to 88.120 pence per euro as Haskel spoke.
The dollar held near a one-week low against a basket of currencies, as investors retreated to the sidelines while concerns grew about an intensifying conflict between the United States and its trade partners, particularly China.
