The euro rallied against the U.S. dollar on Monday morning after plunging to its lowest value in three years due to fears for economic growth.
At about 10.05 GMT (11.05 AM Belgian time) the euro had gained 0.13% against the U.S. currency, climbing to US $1.0845, after dropping at the start of trading to US$1.0822, its lowest rate since April 2017.
According to Jasper Lawler, an analyst for the London Capital Group, the European Commission expects economic growth to reach 1.2% in the eurozone this year, while the European single currency has lost ground to the dollar in nine of the last 10 sessions.
For UBS analyst Thomas Flury, the euro’s recent weakness can be seen as reflecting an aversion to risk since the Covid-19 epidemic has affected global export prospects and Europe desperately needs export-fuelled growth to overcome the recent downturn.
The Coronavirus has caused about 1,770 deaths in mainland China, according to official figures published on Monday. Outside mainly China, where at least 70,500 persons have been infected by the virus, there are close to 800 confirmed cases in about 30 countries worldwide.