TOKYO (Reuters) – The euro gave up early gains and dipped in early Monday trade as exit polls in Italian elections pointed to a stronger-than-expected showing for the anti-establishment 5-Star Movement, although it is falling short of an absolute majority.
The common currency had firmed earlier after Germany’s Social Democrats (SPD) decisively backed another coalition with Chancellor Angela Merkel’s conservatives and as initial exit polls in Italy pointed to a hung parliament as expected.
Euro - Percent - Recovery - Low - Thursday
The euro dipped to $1.2309, down 0.1 percent after having risen to as high as $1.23655, extending its recovery from seven-week low of $1.21545 touched on Thursday.
The 5-Star Movement is likely to be the largest single party by a wide margin, a projection a prominent deputy from the bloc called a “triumph”.
Bloc - Minister - Silvio - Berlusconi - Forza
The center-right bloc, made up of former prime minister Silvio Berlusconi’s Forza Italia, and the far-right League and Brothers of Italy, is set to win most seats but is seen falling some way short of an absolute majority.
With full results not expected for several hours, market reaction has been limited so far but investors are likely to take fright at any suggestion the 5-Star could form a coalition with the right-wing League.
Exit - Polls - Forces - Seats
Exit polls suggested the two forces would have enough seats to govern together and...
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