The euro recovered against the US dollar helped by a turnaround in stocks late in the session which temporarily offset fears that euro zone austerity measures could trigger a downturn in the region.Brian Dolan, chief currency strategist, at Forex.com in Bedminster, New Jersey said: “We’re seeing a little bit of a short-squeeze on the euro. Mondays tend to be a reversal day lately plus the fact that stocks have recovered and that’s provided an impetus to exit euro shorts. I think people are getting bored with euro weakness. You’ve got everybody and his brother talking about the euro That’s a sure indication that the euro is due for a correction higher.”
The euro fell as low as $1.2234. Against the yen, the euro traded up 0.1 percent at 114.54 yen. The dollar was last at 92.51 yen.