The embattled euro held onto modest gains early on Tuesday, having bounced off an 11-year trough as investors decided to take profits on extremely bearish positions.
The common currency last traded at $1.1245, off Monday’s low of $1.1098 – a level not seen since September 2003. Investors sold the euro first thing this week after the Greeks voted in a new hardline, anti-bailout government led by Alexis Tsipras. However, buyers emerged in London and New York.
“Perhaps the market rightly or wrongly is pinning some hopes on Mr Tsipras being more conciliatory,” David de Garis, senior economist at National Australia Bank, wrote in a note to clients. “In any case, the market will be paying close attention to news that could well see more euro volatility for now at least.”
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