Euro Climbs From 20-Month Low as Italy ‘No’ Vote Reaction Fades
- Currency erases losses, strengthens versus most major peers
- Italian premier says he will offer resignation on Monday
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The euro rebounded from its lowest level since March 2015 and a decline in Italy’s bonds was limited as the reaction to Prime Minister Matteo Renzi’s loss in the nation’s constitutional referendum proved relatively short-lived.
While the single currency initially dropped on news that Renzi would resign after conceding defeat, it recovered to strengthen against all except two of its 16 major counterparts, reaching a two-week high versus the dollar. Renzi’s plans to rein in the power of the Senate was defeated by 59.1 percent to 40.9 percent, according to the final tally. Although Italy’s 10-year bond yield climbed the most in three weeks, the move was not enough to erase Friday’s declines.