The superdollar rose to a 38-year high against the yen, while the euro strengthened sharply after the French elections.

He dollar American hits new heights on Monday 38-year high against yenwhile long-term Treasury yields rose sharply, raising concerns among investors that Japanese authorities might intervene to strengthen the country’s currency.

The yen’s weakness was compounded by data showing the Japanese economy contracted more in the first quarter than initially expected.

The dollar hit 161.72 yen in afternoon trading, its highest since 1986. The latest gain was 0.4% to 161.48 yen. The yen has fallen more than 12% this year.

The euro is also the main hero of the day

The euro, for its part, rose on Monday after a convincing and historic victory for the eurozone. French far right The results of the first round of parliamentary elections came in slightly below some expectations, leaving the final outcome to depend on an agreement between the parties before the second round next weekend.

The yen’s fall pushed the euro to a 32-year high of 173.68 yen. On the other hand, the single European currency also rose against the dollar by 0.2% to $1.0736.

How other currencies work

the rise of the euro led to a short-term fall in the dollar against a basket of currencies, although the dollar retreated after data on Friday showed U.S. inflation eased in May, bolstering expectations that The Federal Reserve will begin cutting interest rates later this year.

The dollar retreated briefly after the U.S. manufacturing index fell to 48.5 in June, below expectations for 49.1, while U.S. construction spending in May also came in below expectations, falling 0.1% compared with expectations for a 0.2% gain.

*The dollar index rose 0.1% to 105.84. Against the dollar The British pound held at $1.2643.and the Australian dollar lost 0.2% to $0.6654.