The euro was on track for weekly losses against the dollar and yen as French bond-market concerns intensified, while the yen gained on safe-haven demand after an AI-stock selloff. The euro was down 0.35% on the week against the dollar, while the yen was up about 0.9%.
The euro fell on Friday as a selloff in French government bonds pushed the country’s debt risk premium to its highest level since the 2011 euro zone sovereign debt crisis. The euro was last down 0.12% at $1.12 and set for a 0.35% weekly decline against the dollar; it was down 0.31% against the yen and on track for a 1.3% weekly drop. France planned to deploy 70,000 police for protests on Saturday, and Moody’s was due to review the country’s debt rating.
The yen strengthened 0.18% to 156.45 per dollar and was headed for a weekly gain of about 0.9%, its best week since early September, as investors sought safer assets after Thursday’s AI-stock selloff. Traders were also focused on next week’s Federal Reserve, European Central Bank and Bank of Japan meetings; markets generally expected rates to remain unchanged, while looking for clues on future policy. Euro zone private-sector growth slowed in October to its weakest pace in four months, while Japan’s annual core inflation exceeded the central bank’s 2% target in September.
