The euro climbed from a two-month low against the dollar on Wednesday after losing over 2 percent in the last three sessions as investors considered the move overdone in thin trade in a holiday shortened week. Part of the gain, which left the euro little changed against the dollar, was attributed to a US report signalling improvement in the labour market.
The euro was little changed at $1.3365, having hit a two-month low of $1.3284 and bouncing off its 100-day moving average - currently around $1.3297 - for the first time since early September. The dollar index was down 0.1 percent at 79.662, having hit a high of 79.995, its strongest in two monthstensions between North and South Korea, which most believed would not escalate into something more serious. The dollar fell 1.2 percent against the South Korean won, erasing some of the 3.2 percent advance on Tuesday.