Euro rises after Germany's conservatives win election as dollar weakens

The euro rose 0.46% to $1.0508 after Germany's conservatives won the national election, with Friedrich Merz expected to become chancellor. Coalition negotiations may be complex due to the far-right Alternative for Germany party's strong showing. The dollar weakened as concerns grew over the U.S. economic outlook. The dollar index fell 0.2% to 106.34, continuing a decline of over 3% since January. Falling U.S. Treasury yields and mixed economic data contributed to this trend. Other currencies also gained against the dollar, with sterling near a two-month high at $1.2659. Investors are awaiting key U.S. economic data later this week, which could influence market reactions.