The euro gained against the dollar yesterday at the close of trading in Europe as currency markets sought greater stability despite a higher than expected fall in Chinese exports in February. The euro was changing hands at 1.2769 dollars in late afternoon trading in London compared to 1.2679 dollars on Tuesday.
The European single currency was also up against the Japanese currency at 125.25 compared to 125.16 yen on Tuesday.
The euro was boosted by a slight recovery in confidence among investors, especially after a US study showed an increase in mortgages in the United States last week owing to a drop in interest rates on loans.
The euro was also helped by comments by US President Barack Obama about the need to work together with other governments to boost the global economy and regulate financial markets ahead of the G20 summit of world leaders in London. Mr Obama called for "concerted action around the globe to jump-start the economy" and said governments should "make sure that we are moving forward on a regulatory reform agenda" that would prevent a similar crisis in the future.
Even the publication of a worse than expected fall in industrial orders in Germany that caught analysts off guard failed to break the rise of the euro.
"The release of weaker than expected German order data had little impact on the performance of euro/dollar," French bank BNP Paribas said in a statement.
Central and Eastern Europe currencies meanwhile "have rallied following the news that the IMF (International Monetary Fund) considers bringing additional credit lines in place," BNP Paribas said.
The European currency was also undeterred by a sharp fall in exports in China, the world's third-biggest economy, which hit other currencies that, like the euro, are considered risky by the markets.
Chinese exports were down 25.7 per cent in February compared to the same month last year, while the trade surplus stood at $4.84 billion - a dramatic reduction from more than 39 billion dollars the previous month.
"The China trade report for February released today has brought the trade picture more into balance with what is happening elsewhere around the world," said economist Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ in London.