2017.09.2504:05:00UTC+00Euro, Kiwi Drops on Political Uncertainties

The euro fell on Monday after German Chancellor Angela Merkel won a fourth term but faced a divided parliament as support for the far-right jumped.

The New Zealand dollar was also lower as the ruling National Party won the biggest number of votes in the election but also failed to gain a ruling majority.

The euro dropped 0.2 percent to $1.1933, going farther away from a 2-½ year peak of $1.2092 notched on Sept. 8, when a European Central Bank policy meeting provided optimism to currency bulls on when the ECB will start reducing its massive stimulus programme.

Merkel currently has to work on sounding out new partners to build a coalition government after her current Social Democrat coalition partner announced it would go into opposition.

New Zealand's kiwi, the world's 11th most-traded currency, fell one percent at $0.7264 and is moving towards its largest intraday percentage decline since May. It was at a 1-½ month peak of $0.7435 as recent as Sept. 20.

The pound rose after declining on Friday when British Prime Minister Theresa May failed to give any specific details for how Britain might retain preferential access to Europe's single market following Brexit.

Sterling climbed 0.3 percent at $1.3544 after dropping 0.6 percent on Friday.

The dollar index against a basket of major currencies rose 0.1 percent at 92.257.

The greenback climbed 0.2 percent at 112.260 yen, paring losses acquired on Friday when the exchange of insults between U.S. President Donald Trump and North Korea heightened, which reduced risk appetite.