Around 11:10 am, the Dollar index, which compares the American currency to other major currencies, yielded 0.43% to 100.52 points.
The euro rose on Wednesday against the US dollar, which marked a break in its frantic rise in recent sessions, analysts continuing to bet on a greenback boosted by a strict US monetary policy.
Around 9:10 a.m. GMT (11:10 a.m. CET), the Dollar index, which compares the American currency to other major currencies, fell 0.43% to 100.52 points, after reaching 101.04 points, a level not seen for two years. .
The euro regained 0.48% to 1.0840 dollars.
“The euro was stuck below the $1.08 limit on Tuesday with increasingly intense fighting in Ukraine, but rallied on Wednesday thanks to the general dollar correction,” commented analysts at Sucden.
The Eurozone economy is more directly affected than the United States by the invasion of Ukraine and by the sanctions imposed by the EU against Russia as a result, which explains the weakness of the European single currency.
Russia announced on Tuesday that it had carried out a dozen air strikes and missiles in eastern Ukraine, starting according to kyiv “the battle for Donbass” feared for weeks.
In this context, the European Central Bank (ECB) is reluctant to tighten its monetary policy too abruptly, at the risk of weighing on the economy.
“The ECB is currently very behind” the US Federal Reserve (Fed), “and unless we see a marked change in tone from (ECB President) Christine Lagarde this week, the euro is likely to remain slightly under pressure,” said Matthew Ryan, an analyst at Ebury.
Fed boss Jerome Powell and Ms Lagarde will take part in a discussion on the global economy on Thursday, after trading in Europe closes.
The dollar also marked a break against the yen (-0.47% to 128.30 yen), after reaching a new high in twenty years at 129.40 yen.
“The losses of the yen were limited with the approach of the symbolic threshold of 130 yen for a dollar”, comments Stephen Innes, analyst at SPI AM.
With the Japanese currency plunging 5.5% in one month and 10.2% since the start of the year, analysts are waiting to see if the Bank of Japan will change its tone at its meeting next week, it who has for the moment maintained a very flexible monetary policy and defended that a weak currency benefits exports.