The euro fell for a fifth day versus the dollar after an election loss for Germany’s ruling party stoked concern support is fading for bailouts of Europe’s most- indebted nations, boosting demand for refuge currencies.

The Swiss franc strengthened against all its major counterparts as Greek two-year note yields surged above 59 percent and the cost of insuring government bonds in the region from default climbed to record highs. The Dollar Index climbed to a one-month high as economists said a U.S. report tomorrow will show service industries slowed, adding to signs global growth is weakening. The yen gained versus the euro after German Chancellor Angela Merkel’s Christian Democratic Union was defeated in the election in her home state.

“Another state that Merkel’s CDU has failed to secure in the vote, that’s six now in total, has spurred some euro selling,” said Lauren Rosborough, a senior strategist at Westpac Banking Corp. on London. “We’ve got risk aversion across the board with dollar buying, Swiss buying, gold a little bit stronger and the euro has been sold off.”

The euro slid 0.9 percent to $1.4084 as of 3:31 p.m. in London after falling to $1.4061, the weakest level since Aug. 5. The single currency dropped 0.7 percent to 108.36 yen, and lost 1.4 percent to 1.10458 francs. The yen slipped 0.2 percent to 76.95 per dollar. For more visit: Bloomberg.com

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