On Tuesday, the euro climbed from 22-month lows against the US dollar hit the previous session, lifted in part by expectations that the euro zone will increase fiscal spending to help offset the economic effects of the Ukraine crisis.
Investors were also hesitant to sell the euro ahead of a European Central Bank policy meeting on Thursday. The prospect of stagflation has prompted economists to suggest policymakers might delay rate hikes until late in the year. Europe's single currency, which has been so negatively affected since the start of the latest geopolitical turmoil, also gained versus other currencies such as the yen, Swiss franc and sterling.
The euro regained some ground after five sessions of declines versus the dollar. It was up more than a cent from a trough of $1.0806 on Monday, its lowest since March 2020 when the COVID-19 pandemic gripped Europe. The single currency was last up 0.5% at $1.0906 .
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