Singapore/Sydney — The euro fell to a 20-month low on Monday and investors fled riskier assets after Italian Prime Minister Matteo Renzi said he would resign following a stinging defeat on constitutional reform that could destabilise the country’s shaky banking system. Renzi’s defeat deals a body blow to an EU already reeling under anti-establishment anger that led to the shock exit of UK from the club in June. The single currency, which opened at about $1.0685, slumped as much as 1.4% to $1.0505, its lowest since March 2015, before recovering a bit to $1.0539. The drop to its session low was the sharpest since June and opened the way to a retest of the March 2015 trough around $1.0457. "It’s not very hard to see a new election, and it’s not very hard to see the [opposition] 5-Star Movement taking power and they’ve basically said they want to get out of either the EU or the euro or both," said Mark Wills, head of State Street Global Advisors’ investment solutions group for the Asia-...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.