Investing.com – The dollar traded higher against a basket of major currencies on Monday, supported by a slump in the euro, as investors took profit in the single currency after Emmanuel Macron’s victory in the French presidential election.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.54% to 98.95 by 12:58 EDT.
Centrist candidate Macron won the race to the French presidency, defeating anti-EU candidate by a landslide margin, after he garnered 66% of the French vote.
The euro spiked to the upside, following Centrist candidate Emmanuel Macron's victory but gains were pared, after investors decided to take profit, following a two-week rally in the single currency.
Emmanuel Macron's victory over Marine Le Pen was widely expected as he held a significant lead in the polls during the build up to the runoff vote on Sunday.
Meanwhile, investors mulled over the potential obstacles facing Macron as he seeks to implement his proposed program of economic reforms.
EUR/USD traded at $1.0925, down 0.28%, while EUR/GBP fell 0.30% to 0.8449.
Meanwhile, GBP/USD lost 0.32% to $1.2931, as Macron’s victory raised concerns over Theresa May’s Brexit agenda, as the newly elected French President vowed to be “tough” on Britain earlier this year, following the UK’s decision to leave the EU.
The victory for pro-EU Macron triggered risk-on sentiment, and weighed on safe-haven yen, which slipped against the dollar. USD/JPY traded at 112.98, up 0.23%.
USD/CAD rose by 0.44% to $1.3712.