By Saqib Iqbal Ahmed
NEW YORK (Reuters) – The euro weakened against the U.S. dollar on Friday as investors braced for Sunday’s first round of a tight French presidential election.
The euro was down 0.14 percent against the dollar at $1.0699, off the session low of $1.0683. The common currency was 0.33 percent lower against the yen and down 0.27 percent against the Swiss franc.
“We have got overall de-risking happening. You have people keeping the powder dry ahead of Sunday,” said Karl Schamotta, director of global product and market strategy at Cambridge Global Payments in Toronto.
“Traders are looking liquidity and countries with a strong net international position.”
Opinion polls suggest that France’s election will likely come down to a second-round duel between independent centrist Emmanuel Macron and Marine Le Pen, head of the anti-European Union and anti-immigrant National Front.
Polls showing Macron in pole position ahead of the vote and an upbeat Purchasing Managers’ Index survey from France helped steady investors’ nerves somewhat and the euro was still on pace for its best week in 11 against the dollar.
