Euro tops US$1.10 for first time since French election results

[LONDON] The euro topped US$1.10 for the first time since the results of the second round of the May 7 French presidential run-off on Tuesday, as the US dollar weakened across the board on doubts over whether US interest rates would rise next month.

The euro traded as high as US$1.1011, up a third of a per cent on the day, just shy of a six-month peak of US$1.1024 that it briefly jumped to in the aftermath of the French election results.

Investors are still pricing in around a 73 per cent chance that the US Federal Reserve will hike interest rates in June, but that was down from a more than 80 per cent chance last week, according to CME's FedWatch tool.

That, along with political worries, has weakened the US dollar, which also sank against the yen.

REUTERS