TOKYO, June 17 Reuters The dollar was firm on Monday as the euro hovered near a more than onemonth low amid political turmoil in Europe, while investors awaited fresh clues on the strength of the U.S. economy.

Investors have been contemplating the risk of a budget crisis at the heart of the euro area, as far right and leftist parties gain momentum ahead of France39;s surprise parliamentary election, pressuring President Emmanuel Macron39;s centrist administration.

Even after the French financial markets endured a brutal selloff late last week, European Central Bank policymakers have no plans to discuss emergency purchases of French bonds, five sources told Reuters.

The euro inched down 0.04 to 1.07025, after falling to its lowest since May 1 at 1.06678 on Friday. The currency also logged its biggest weekly decline since April at 0.88 last week.

Although the political turmoil is a eurobearish story, as the euro accounts for around 57 of the US dollar index weighting, the fall of the euro has indirectly benefited the dollar, said Matt Simpson, senior market analyst at City Index.

The dollar index , which measures the greenback against a basket of peer currencies, was unchanged at 105.54, after touching its highest since May 2 at 105.80 on Friday.

Minneapolis Federal Reserve President Neel Kashkari said on Sunday it was a reasonable prediction that the U.S. central bank would cut interest rates once this year, waiting until December to do it.

The Fed published updated…