Euro's Rebound Amid Political Turmoil and Currency Market Shifts

The euro recovers slightly after French political turmoil sparked market concerns, while the yuan falls due to tariff risks. The yen holds steady, with possible rate hikes in Japan. Traders eye Trump's policies and US jobs data for impact on dollar dynamics.

The euro showed signs of recovery on Tuesday, regaining stability after market upheaval caused by political uncertainties in France. Traders were actively seeking protection against further price fluctuations, with the yuan reaching a 13-month low amid ongoing tariff threats and weakness in China's economy.

Previously the weakest currency among the G10 nations, the euro witnessed a 0.7% decline on Monday, but by Tuesday was trading at $1.0487. The political instability in France, with Prime Minister Michel Barnier facing a no-confidence vote, has heightened market volatility.

Meanwhile, the dollar faces pressure from the prospect of seasonal downturns and policies from President-elect Donald Trump. Speculation about tariffs on BRICS nations casts uncertainty on the future of currency shifts, while investors await key employment data from the United States this Friday.

(With inputs from agencies.)