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Dollar Steady as Euro Nears One-Month Low


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The US dollar was strong today due to ongoing concerns about Europe's political environment, while the euro was near its lowest point since May 1. The euro was little changed at $1.0701 after a significant weekly decline of 0.88% last week.

Political developments in France are affecting the euro's performance as far-right and left-wing parties gain ground ahead of an unexpected parliamentary election, putting pressure on President Emmanuel Macron's centrist government. Despite the volatility in French financial markets last week, the European Central Bank has no plans to discuss emergency bond purchases, according to five sources.

City Index analysts noted that the decline of the euro, which makes up about 57% of the US dollar index weight, indirectly supports the dollar's strength. The dollar index, a gauge of the greenback against a basket of major currencies, was little changed at 105.52 after reaching a peak of 105.80 on Friday.

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