Euro on defensive

Hot Now

TOKYO: The euro was on the defensive early on Monday after Austria´s election and on concerns over Catalonia´s confrontation with Madrid, though the dollar also lacked momentum after soft U.S. inflation data.

The euro fell as much as 0.25 percent in early trade and last stood at $1.1806, down 0.2 percent, slipping further from a 2 1/2-week high of $1.1880 touched on Thursday.

Austria´s young conservative star Sebastian Kurz is on track to become the country´s next leader after an election on Sunday.

He will likely seek a coalition with the resurgent far right as his party is far short of a majority.

Investors also kept an eye on Spain, where Catalan leader Carles Puigdemont has until 10:00 a.m. local (0800 GMT) on Monday to clarify whether he is calling for the region´s independence. Prime Minister Mariano Rajoy has given him the Monday deadline to clarify his position -- and until Thursday to change his mind if he insists on a split -- and said Madrid would suspend Catalonia´s autonomy if he chooses independence. Still, the fall in the common currency was limited as investors expect the European Central Bank to unveil a plan later this month to start tapering its bond buying scheme.