Investing.com - The euro remained up more than 1% against the dollar on Monday after jumping to 5-month highs earlier as the results of the first round of voting in French presidential elections eased concerns about the future of the euro zone.
EUR/USD was at 1.0860 by 10.55 ET after hitting highs of 1.0920 earlier, the strongest level since November 11.
Centrist former economy minister Emmanuel Macron edged out Marine Le Pen, leader of the far-right National Front party, in Sundays first round vote, delivering a result that most investors were hoping for.
Macron took 23.8% of the vote ahead of Le Pen on 21.7% according to final voting figures from France's Interior Ministry.
Polls, which were largely accurate in forecasting the first round outcome, have indicated that Macron will comfortably beat Le Pen in the runoff vote on May 7, easing fears over the risk of a French exit from the currency union.
The dollar strengthened against the safe haven yen as risk appetite sharpened, with USD/JPY advancing 0.72% to 109.88, after hitting an earlier high of 110.52.
The euro was also higher against the Japanese currency, with EUR/JPY surging 2.03% to 119.37 after earlier logging a one-month high of 119.94.
The euro rose around 1.5% against sterling, with EUR/GBP at 0.8501.
The stronger euro weighed on the dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, sending it down 0.71% to 98.95.
Investors were also monitoring geopolitical developments, amid heightened tensions on the Korean peninsula.
North Korea said on Sunday it was prepared to sink a U.S. aircraft carrier conducting drills with Japanese destroyers near the Philippines in order to demonstrate its military might.
Markets were also eyeing events in Washington amid concerns over the prospect of a looming deadline to avoid a government shutdown and ongoing uncertainty over economic policy.
U.S. President Donald Trump said Friday that a "big announcement" was coming this Wednesday on overhauling the U.S. tax code. An administration official said on Saturday that the announcement will consist of "broad principles and priorities".
Meanwhile, a U.S. manufacturing survey released on Monday pointed to a slight dip in factory activity in April.
The Dallas Fed manufacturing index ticked down to 16.8 this month from 16.9 in March, against expectations of an increase to 17.