Euro drops 0.50% versus strengthening dollar, France in focus

(Reuters) – The euro dropped versus a strengthening dollar on Monday, with investors concerned about political developments in France.

France’s far-right National Rally (RN) party will likely back a no-confidence motion against the government in the coming days unless there is a “last minute miracle”, RN president Jordan Bardella said on Monday.

The growing uncertainty over France’s budget pushed the risk premium on the government’s bonds to a more than 12-year high last week.

The euro fell 0.55% to $1.0515, while the U.S. dollar index rose 0.46% to 106.28.