The single currency of the European Union recovered some of its losses to the U.S. dollar on Thursday after Greece's leader signaled there will be no referendum and the European Central Bank slashed interest rates, according to MarketWatch.
Early in the trading session, the euro endured significant pressure when new ECB president Mario Draghi stated during his first press conference that the economy of the euro zone is barreling toward a mild recession. However, the euro recovered after Papandreou indicated Greek nationals will not decide if they want a bailout.
"As the debt crisis heightens the risk of a double-dip recession, we may see an increased reliance on the ECB to balance the risks for the region," currency analyst David Song with Daily FX told MarketWatch. "The Governing Council may have little choice but to expand its nonstandard measures further as European policy makers struggle to meet on common ground."
The 17-nation currency also bounced back from its lowest value since mid-October against the greenback after Draghi lowered interest rates from 1.5 percent to 1.25 percent.
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