The euro steadied on Tuesday as unrest in France eased overnight, though higher bond yields capped gains. The pound rose after British jobs data, and the yen jumped after a Japanese bond auction drew record demand.
The euro was little changed at $1.1211 on Tuesday after authorities in France set curfews in several cities to curb nationwide anti-government protests. Higher bond yields capped the single currency's gains, according to Reuters.
France stays in focus for the euro
Concerns about France's long-term finances have pushed its bond yields higher and weighed on the euro since the start of September. Last week the euro hit $1.1113, its lowest since May 2025.
France's lower house is set to vote on the revenue section of the proposed 2027 budget on Tuesday. Handelsbanken FX strategist Tommy von Brömsen said: "The worries in France are not going away anytime soon."
Pound gains on UK jobs data
Meanwhile, Britain's pound rose 0.3% against the dollar to $1.3347 after labour market data showed a resilient jobs market. EToro global market strategist Lale Akoner said the risk is that a resilient labour market gives the Bank of England both the room and the reason to raise interest rates again.
The US dollar index was down 0.1% at 101.85, near the lower end of October's trading range. Investors also watched oil, with Brent crude futures near a five-month high above $111 a barrel.
Yen rises on record bond demand
The yen snapped a two-day decline after an auction of 20-year Japanese government bonds received bids worth 5.84 times the amount sold, the highest ratio since the bonds were first sold in 1987. That pushed the yen 0.2% higher to 158.14 per dollar.
Elsewhere, the Canadian dollar strengthened 0.5% to 1.4048 against the greenback. The Chinese yuan closed the domestic session at 6.6791 per dollar, its strongest close since June 2022.
Source: Investing.com
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