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    Home > Finance > Euro drops 0.50% versus strengthening dollar, France in focus
    Finance

    Euro drops 0.50% versus strengthening dollar, France in focus

    Published by Global Banking & Finance Review®

    Posted on December 2, 2024

    1 min read

    Last updated: January 28, 2026

    This image illustrates the newly unveiled French government, led by Prime Minister Francois Bayrou, as they tackle the upcoming budget crisis and political pressures. Key figures, including Finance Minister Eric Lombard, are pivotal in addressing France's financial stability.
    New French government unveiled amid budget challenges - Global Banking & Finance Review
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    Quick Summary

    The euro fell 0.50% against the dollar amid political uncertainty in France, with the National Rally party considering a no-confidence motion.

    Euro Declines 0.50% Against Strengthening Dollar, Focus on France

    (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.

    (Reporting by Stefano Rebaudo, editing by Amanda Cooper)

    Key Takeaways

    • •Euro drops 0.50% against the dollar.
    • •Political uncertainty in France affects markets.
    • •National Rally party may back no-confidence motion.
    • •France's budget risk premium hits 12-year high.
    • •US dollar index rises to 106.28.

    Frequently Asked Questions about Euro drops 0.50% versus strengthening dollar, France in focus

    1What is the main topic?

    The main topic is the decline of the euro against the dollar due to political uncertainty in France.

    2Why is the euro declining?

    The euro is declining due to political uncertainty in France, with potential no-confidence motions affecting market confidence.

    3What is the impact on France's budget?

    The uncertainty has pushed France's budget risk premium to a 12-year high, indicating increased financial risk.

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