Euro rebounds as US dollar pauses for breath

London

THE euro rose against the US dollar for the first time in two weeks on Thursday, recovering from a slump to a 12-year low in Asian trading as the greenback took a pause from its broad upward surge.

However, traders said that the euro's gains would prove short-lived, with many expecting the common currency to fall to parity with the US dollar in coming months for the first time since 2002. Both technical indicators and options market pricing showed that more losses are in store for the beleaguered currency.