The euro slipped below $1.05 for the first time in six weeks on Wednesday. The single currency is weighed by a combination of concern over France's presidential election campaign and growing expectations for a rise in U.S. interest rates.
Concern grew as the odds of anti-EU candidate Marine Le Pen winning the election in May are on the rise. This would give a fatal blow to the euro project.
Three-month risk reversals – the weight of bets against the euro over bets on its strengthening – hit their most negative in more than a year, surpassing levels seen after Britain's vote to leave the European Union last year.
As a consequence, the spot prices of the euro is falling under pressure; euro is down around 2 percent in the last three weeks and EUR/USD fell as low as 1.0492 in morning trade in Europe.
The greenback was stronger for the second day running, gaining around a third of a percent against the basket of currencies used to measure its broader strength.
USD/JPY dipped however, almost around half a percentage point. The yen gains strength as investors grow more worried about global political risks. The pair fell below 113.
