Euro drops to 20-month low as Renzi concedes referendum defeat

13:20, 05 December 2016
Economy
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The euro fell to the weakest level since March 2015 as Italian Prime Minister Matteo Renzi said he would resign after conceding defeat in the nation's constitutional referendum, according to Bloomberg.

REUTERS

The single currency dropped against all its 16 major counterparts as the referendum on Renzi's plans to rein in the power of the Senate was defeated by 60% to 40%, with almost all the vote counted. The euro pared losses following the premier's speech, while the yen erased an earlier advance against the dollar, Bloomberg reported.

The euro dropped 1.1% to $1.0548 as of 13:36 in Tokyo after falling as much as 1.5% to $1.0506, the lowest since March 16, 2015.

At the same time, Reuters reported that Britain's FTSE to start the day 0.4% lower.

As UNIAN reported earlier, following a referendum defeat, Italian PM Matteo Renzi has said he will step down without delay. Initial polls have suggested Italians overwhelmingly voted against the premier's proposed constitutional reforms.

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