The euro was higher against the other major currencies, reversing sharp losses seen during Asian hours after talks aimed at forming Germany’s next coalition government collapsed overnight.
Negotiations broke down after the pro-business Free Democratic Party (FDP) walked out of the talks, ending efforts to form a three-way coalition government.
The collapse of talks leaves German Chancellor Angela Merkel with the option of forming a minority government. If no new government is formed the president can call a new election.