Euro rises as Germany's conservatives win election while US dollar declines on growth concerns

The euro strengthened after Germany's conservative party, led by Friedrich Merz, won the national election. Merz will need to navigate complex coalition talks following the far-right Alternative for Germany's strong performance. The U.S. dollar fell amid concerns over economic growth, with traders reacting to a series of disappointing business activity reports. The dollar index dropped 0.2%, continuing a decline of over 3% since January. In currency trading, the British pound and Australian dollar both gained against the dollar. The Japanese yen also rose, reaching its strongest level in over two months as speculation grew about a potential rate hike from the Bank of Japan.