The euro nursed broad losses early on Thursday after a batch of disappointing data from Italy and Germany soured sentiment for the currency just hours ahead of a policy review by the European Central Bank.
Italy unexpectedly slid back into recession in the second quarter, while German industrial orders in June posted their biggest monthly fall since September 2011. Investors were quick to dump the euro, driving the currency to its lowest in over eight months against the yen at 136.16. It skidded to a three-week low on the Swiss franc, hitting 1.2140 francs.
Against the dollar, the common currency initially slumped to a nine-month trough of $1.3333, but then erased all of its losses and then some to trade back at $1.3385. The recovery came when the dollar went into a free fall against the yen in thin conditions just after European markets had closed.
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