The euro surged 2 percent against the US dollar and climbed against the Great Britain pound as well during Monday’s trading as Chinese shares plunged, dragging down stocks of other countries along with them. The currency was far less successful versus the Japanese yen, dropping more than 1 percent.
China scared investors by another plunge of its stock market, driving speculators away from riskier assets. Yet this did not hurt the euro much. In fact, the currency was very strong, proving right the last week’s observation that the currency acts as a safe haven now (at least temporary). Saying that, it could not beat the usual haven currency — the yen.
It is hard to believe that the euro will be able to retain its strength for long. After all, Europe will also likely suffer from China’s troubles. Coupled with the domestic problems, this makes the shared European not all that attractive in the longer term.
EUR/USD leaped from 1.1377 to 1.1597 as of 22:47 GMT today, and its daily high of 1.1712 was the highest rate since January 15. EUR/GBP climbed 1.5 percent from 0.7243 to 0.7358, touching the high of 0.7421 intraday — the strongest rate since May 7. At the same time, EUR/JPY dipped from 138.66 to 137.28 while its daily low was at 136.01 — the weakest since August 7.
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