Daily currency report

The euro weakened to a more than three-month low after François Hollande was elected President of France while Greek voters flocked to anti-bailout parties, stoking concern austerity efforts in Europe may be derailed.

The 17-nation currency slid for a sixth day, its longest series of declines since September, dropping as much as one per cent before paring losses.

Mr Hollande, who becomes the first Socialist in 17 years to control Europe’s second-biggest economy, pledged to push for less austerity and more growth in the region.

In Greece, new democracy leader Antonis Samaras has been given three days to try to put together a coalition government after a Greek election that raised fresh questions about the country’s euro membership and triggered the biggest stock-market rout in four years. As voters across Europe rebel against austerity measures imposed to stamp out the debt crisis, Citigroup Inc. said that the risk of leaving the euro by the end of 2013 has risen as high as 75 per cent.

Other currencies

The yen and the dollar pared gains against higher-yielding currencies as safety demand weakened. The Australian and New Zealand dollars dropped amid concern election results in France and Greece will derail efforts to resolve Europe’s sovereign-debt crisis, damping demand for higher-yielding assets.

Australia’s currency was on track for its longest stretch of losses in nine months even after domestic reports showed gains in retail sales and building approvals. New Zealand’s dollar fell against its US and Japanese peers as Asian stocks extended a global rout.