The European Single Currency, Euro, on Wednesday, September 27, dropped 0.4 percent to a one-month low below $1.1742 EUR=, having fallen as low as $1.1732.
The single currency traded close to $1.21 earlier this month but was rattled by Sunday’s German election, which brought the far-right Alternative for Germany (AfD) party into parliament.
An index of European banks rose 1.5 percent as the pan-European STOXX 600 share index rose 0.4 percent to a 10-week high.
The yen fell 0.6 percent to 112.92 per dollar, close to an 11-week low, and sterling lost 0.3 percent to $1.3420 against the resurgent greenback, picking up from as low as $1.3363.
Euro zone government bond yields followed Treasury yields higher. German 10-year benchmark yields rose 6 basis points to 0.47 percent.
A weaker euro – a boon for exporters – pushed European equities higher.A rise in the dollar to one-month highs against the euro following a signal the previous day by the head of the U.S. Federal Reserve that rates will continue to tighten dampened the broader commodity markets and that weakness fed into oil, Reuters reports.
