July 8 (Reuters) – The euro touched a more than three-week high against the dollar on Monday, recovering overnight losses as France’s election pointed to a hung parliament.

The dollar, meanwhile, crept downward, after U.S. payrolls data on Friday boosted bets that the Federal Reserve will soon start cutting interest rates.

French President Emmanuel Macron on Monday asked his prime minister to stay in the role for now, pending what will be difficult negotiations to form a new government after a surprise left-wing surge in elections that delivered a hung parliament.