The euro rises on the impact of a European recovery fund


The euro rose on Wednesday, thanks to a French-German proposal for a mutual fund that might approach Europe with a financial union, which boosted demand for the single currency, while the Swiss franc rose thanks to some risk aversion in the currency markets.
The euro rose 0.18 percent to 1.0945 dollars, approaching the highest level in two weeks, 1.09755 dollars, which was recorded on Tuesday.
France and Germany proposed on Monday the creation of a 500 billion euro ($ 543 billion) economic recovery fund that provides grants to regions and sectors most affected by the Corona virus and allows the European Commission to borrow on behalf of the European Union as a whole.
Although the proposed fund size is relatively small compared to the size of some major European economies, the proposal has reduced some selling pressure on the euro in recent weeks from hedge funds.
The euro’s gains pushed the dollar index down near a three-week low of 99.225 it hit in the previous session.
In light of a clear trend to refrain from risk in the markets, the Swiss franc rose against the US currency and the euro.


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