The euro fell on Thursday after the widely expected collapse of the French government, raising concerns about the euro zone’s second-largest economic power, while Bitcoin surpassed $100,000 for the first time.
The euro recorded $1.052175, trading in a narrow range during trading hours in Asia, but it was close to its lowest level in two years at $1.03315, which it touched at the end of November as traders prepared for developments in France.
French opposition representatives toppled the government yesterday, Wednesday, pushing the second largest economic power in the European Union into a deeper political crisis that threatens its ability to legislate and control a huge budget deficit.
“The fall of the government means that political uncertainty will continue to affect business and consumer confidence,” said Charlotte de Montpellier, an economist at ING Financial Group.
At a parliamentary hearing held on Wednesday, European Central Bank President Christine Lagarde said that economic growth in the euro zone may be weaker in the coming months and that downside risks dominate the outlook in the medium term.
The yen rose slightly to 150.345 against the dollar as investors awaited the chances of the Bank of Japan raising interest rates later this month. Markets are placing a 60% chance of a rate hike in December.
In the United States, investor confidence in cutting interest rates remained strong despite comments from Federal Reserve Chairman Jerome Powell and a batch of economic data released overnight, which showed service sector activity slowing in November after achieving gains in recent months.
Powell said yesterday, Wednesday, that the economy is stronger now than the central bank expected last September when it began cutting interest rates, in an apparent indication of his support for reducing the pace of interest rate cuts in the future.
The dollar index, which measures the US currency against 6 competing currencies, recorded 106.27.
The British pound saw little change at $1.2709.
In terms of digital currencies, Bitcoin jumped above $100,000 for the first time today, Thursday, in a milestone in the maturity of cryptocurrencies, amid investors’ bets on the new US administration led by Donald Trump and expectations that it will provide a favorable environment to strengthen the position of these currencies in the financial markets.
Once it broke the $100,000 barrier in morning trading In Asia, Bitcoin surpassed $103,000, advancing further to $103,335 $.
According to CoinGecko data, the total value of the cryptocurrency market has nearly doubled in the 12 months so far, to record a record of just under $3.8 trillion, which is therefore higher than the value.
The value of Bitcoin has more than doubled this year and has risen by about 45% in the four weeks since Trump’s victory
