LONDON, Feb 7 (Reuters) - The cost of insuring against volatility in the euro versus the dollar over the next three months rose to its highest in over a week on Tuesday as contracts took in the date of the final round of France’s presidential elections.
Implied volatility, a measure of expected swings in the single currency over the next two months, rose to 9.292 percent from around 8.6 percent on Monday.
Shorter-dated contracts were also higher as spot rates for the single currency against the dollar fell. All remain well below highs seen when the dollar was gaining, and bets on an electoral surge for European populist parties growing, after Donald Trump’s election as U.S. president last year. (Reporting by Patrick Graham, editing by Nigel Stephenson)