Euro Declines to Six-Week Low Amid Italian Election Concern
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The euro fell to the lowest level in six weeks versus the dollar after partial election results from Italy suggested the four-way race may end in a divided parliament requiring another vote.
The yen rose from the weakest since May 2010 against the dollar and rallied against the euro as the election renewed the traditional refuge appeal of the Japanese currency. The 17-nation euro erased earlier gains as forecasts by state broadcaster RAI showed Democratic Party candidate Pier Luigi Bersani winning the lower chamber and Silvio Berlusconi with a blocking minority in the Senate. The pound overtook the yen as the biggest loser this year out of 10-developed nation currencies following the U.K.’s rating downgrade.