A The AfD's success, combined with the anti-capitalist Left party's score, means more than one in five voters supported the political fringe.
Nordea currency strategist Niels Christensen said that investors were also closing out long-euro positions towards the end of the month, which was increasing the euro's weakness. "It could be that we have a short legislature", Renner, who heads the party's branch in the North Rhine Westphalia, predicted.
And with the re-election of the German chancellor, both Merkel and Macron have a "golden opportunity" to build up the EU as global force of economic stability, Strobaek said. "The State of Israel is certain that under her leadership the special relationship between Germany and Israel will continue to deepen and prosper". Alternative für Deutschland secured 13%, marking the first time in almost six decades that an openly nationalist party will enter the Bundestag. Although she acknowledges the validity of the right-wing AFD's concerns about the impact of immigration, Ms. Merkel categorically rules out a role in the government for the AFD, entering parliament for the first time.
"We trust that centrist parties in the Bundestag will ensure that the AfD has no representation in the coming governing coalition", he said. The combination, called a 'Jamaica' coalition because the parties' colours match those of the Caribbean nation's flag, has never been tried before in a national government. They do not have a right to do this.
The Social Democrats are likely to remain the chief opposition party, weakening the political impact of the AfD despite its third-place showing, said Sergey Lagodinsky, a political activist with the Green Party and member of the Berlin Jewish Community Council.
Hundreds of protesters gathered in cities throughout Germany on Sunday evening to protest the AfD's election successes.
The former Goldman Sachs banker was quoted as comparing Merkel's government to "pigs" for allowing nearly 1 million migrants and refugees ― many of them fleeing war-torn nations in the Middle East ― into the country.
The CDU and its Bavarian sister party the Christian Social Union (CSU) won 33 percent, down from 41.5 percent in the last federal election in 2013.
Leading AfD candidate, Alexander Gauland, gave a foretaste of the hostile new tone expected in parliament, saying it would "hound" Ms Merkel and "get our country and our people back".