The euro dipped for the first time in more than a week, with traders mulling the impact of political gridlock in France on the country's finances.

The common currency fell as much as 0.4% due to concerns about deteriorating public finances in France. It later recouped some of the losses amid signs that neither Marine Le Pen's National Rally nor a left-wing coalition had won the majority needed to govern.

The Swiss franc, which typically reflects risk-off sentiment in Europe, gained versus the euro, touching its highest since July 1.

"The worst outcome for the euro has been averted for now," Alvin Tan, head of Asia FX strategy at Royal Bank of Canada in Singapore, wrote in a note. "But the political situation in France remains uncertain and the fiscal balance is unlikely to improve significantly as a result".

The yen outperformed against its Group-of-10 peers as wage data supported the case for a Bank of Japan interest-rate hike.

EUR/USD edged 0.1% lower at 1.0829.

EUR/CHF fell as much as 0.3% to 0.9679.

USD/JPY declined 0.2% to 160.39.

Source : Bloomberg