The euro languished near a 22-month low on Thursday, weighed down by ailing growth in Germany and the spectre of political uncertainty in Spain. A surprise drop in German business morale has highlighted the divergence between economic data in the United States and the eurozone.
The euro fell to a two-month low on Wednesday, the dollar edged up to $1.1671 per euro, its highest since July 27.
Equity markets climbed on Thursday as more businesses returned to work and as a 750-billion-euro stimulus plan in Europe lifted regional stock indices and the euro, but gold rebounded on deteriorating US-China relations.
Risk sentiment was also undermined after Federal Reserve officials expressed concern that rising coronavirus cases could harm economic growth just as stimulus measures start to expire.
The euro retreated from near two-month highs and equity markets wavered on Wednesday even as the EU unveiled a 750b euro ($823 billion) recovery fund that helped offset concerns about unrest in Hong Kong over Beijing’s proposed security laws.
The euro bobbed around $1.18 but the pound was at two-week low of $1.3125 and the yuan back-pedalled too after US President Donald Trump warned about "decoupling" the US and Chinese economies.
The euro inched higher on Friday with the dollar weighed down by concerns over the strength of a US economic recovery following weaker-than-expected jobs data, while China's yuan surged to a seven-month high as traders bet on Chinese growth.
The euro fell on Monday as traders that have pushed the single currency to multi-year highs took a breather and prepared for the European Central Bank meeting on Thursday to see if policymakers will introduce yet more stimulus.
The Dubai Public Prosecution has referred three Asians to the Criminal Court on charges of possessing fake €15,000. One of the defendants is still at large.