LONDON, Dec 3 Reuters The euro edged up on Tuesday, regaining some poise after political turmoil in France sent traders scrambling for hedging protection against further price swings, while the yuan hit a 13month low on tariff risks and weakness in China39;s economy.

The yen , which has gained nearly 4.5 in the last two weeks, retreated slightly against the dollar, but remained near sixweek highs, as traders are growing increasingly confident that Japan may hike rates this month.

The euro , which had been the weakest G10 currency through November, began this month with a 0.7 fall on Monday and was last hovering at 1.0487, as France39;s government heads for collapse over a budget impasse. EURGVD

French Prime Minister Michel Barnier faces a vote of no confidence on Wednesday after fierce opposition from across the political spectrum to his budget, which contains painful tax rises and spending cuts aimed at repairing the country39;s precarious finances.

Demand for hedges, as reflected by euro options volatility, has hit its highest since March 2023 this week and, with the combination of a string of weak data, political uncertainty in major euro zone economies and the seemingly unstoppable dollar, the single European currency could struggle.

There is just so much going against the euro at the moment…the list of headwinds is just growing longer by the day, City Index market strategist Fiona Cincotta said.

Today, you39;ve got political instability in France, obviously…