The euro rebounds against the dollar following the election results in France.

The euro traded at over three-week highs against the dollar on Monday, recovering from overnight losses after the French elections resulted in a divided Parliament.

The greenback was down following Friday’s U.S. payroll data, which fueled bets that the Federal Reserve would soon start cutting interest rates. French President Emmanuel Macron on Monday asked his prime minister to remain in office for now, pending tough negotiations to form a new government after the unexpected advance of the left in the parliamentary elections.

So far, however, the market reaction to the election outcome has been “relatively moderate.”

The euro was up 0.04%, trading at $1.0840, after reaching $1.0845, its highest level since June 12. Early in the session, it fell to $1.07915.

The dollar index, which compares the greenback to a basket of six major currencies, was down 0.12% at 104.82, after dipping to 104.80, its lowest level since June 13.

The dollar fell 0.08% to 160.59 units, remaining below the 38-year high of 161.96 reached last week.

The British pound improved by 0.24% to $1.2838, trading at over three-and-a-half-week highs against the dollar and the euro following the Labour Party’s landslide victory in last week’s UK elections, ending 14 years of Conservative government.