* Euro trades as high as $1.0940 in early Asian trade
* Centrist Macron wins first round of French election
* DXY slips, but losses mitigated as safe-haven yen slips
TOKYO, April 24 The euro scaled five-month highs
against the dollar in early Asian trading on Monday after the
centrist candidate swept to victory in the first round of the
French presidential election, reducing the risk of an
anti-establishment shock in the final round.
Centrist Emmanuel Macron, a pro-EU ex-banker and former
economy minister, emerged as the leader of the first round of
voting and qualified for a May 7 runoff alongside the second
finisher, far-right leader Marine Le Pen.
His victory makes him the frontrunner in next month's
election, and marked a huge defeat for the two centre-right and
centre-left groupings that have dominated French politics for 60
The euro surged 0.9 percent to $1.0868 after earlier
rising as high as $1.0940, its highest since Nov. 10. Against
the yen, it jumped 2.3 percent to 119.66, after
touching a one-month high of 120.935.
Short-covering on election relief lifted the single currency
and triggered stop-loss orders, market participants said.
"We saw the big moves in the early trading hours when
liquidity was thin, so we might not see anything dramatic for
the rest of the Asian session," said Mitsuo Imaizumi,
Tokyo-based chief foreign-exchange strategist for Daiwa
The euro's gains dented the dollar index, which tracks the
U.S. currency against a basket of six rivals. It slumped 1
percent to 98.998, though its losses were mitigated as
the greenback gained against the perceived safe-haven yen.
The dollar was up 0.9 percent at 110.04 yen, rising
above the 110-yen level for the first time in nearly two weeks.
Also underpinning the dollar, the benchmark 10-year U.S.
Treasury yield rose to 2.246 percent in Asian trade,
up from Friday's U.S. close of 2.236 percent.
The French vote and the euro's rise come ahead of a European
Central Bank policy meeting on Thursday, at which the central
bank's ultra-easy stance is set to remain unchanged.
The market largely shrugged off U.S. President Donald
Trump's promise on Friday that a "big announcement" was coming
next week on overhauling the U.S. tax code. An administration
official said on Saturday that the announcement will consist of
"broad principles and priorities."
Trump will sign several executive orders on energy and the
environment this week, which would make it easier for the United
States to develop energy on and offshore, a White House official
said on Sunday.
(Reporting by Tokyo markets team; Editing by Shri Navaratnam)