Euro skids toward fifth weekly fall but selling pressure slows

The euro was heading for its fifth consecutive weekly decline on Friday, according to Business Recorder, although the pace of selling appeared to ease. Bond market turmoil in France steadied, and lower US yields reduced the dollar's recent gains. The single currency had hit its weakest level in 17 months, at $1.1161, early on Monday before recovering to $1.1211, a weekly fall of 0.3 per cent.

Concerns about France's heavy public debt and the difficulty of agreeing budget cuts had weighed on the currency, while a stronger US economy supported the dollar. Marine Le Pen, the far-right presidential contender, unveiled plans to trim the budget deficit, which markets viewed as reassuring. Students, meanwhile, blockaded schools and marched in French cities, and Macquarie strategists warned that the bond sell-off and street unrest were feeding each other.

Matt Simpson, a senior analyst at StoneX, described the recent moves as stretched and said bearish momentum was waning. The yen was set for a fourth weekly decline but had steadied near 158 per dollar, with only small moves over the last three weeks. The New Zealand dollar was on its longest losing run in over four years, heading for a seventh weekly drop.