Euro fell versus the U.S. dollar during Tuesday trading, following the decision of the German Constitutional Court to partially reject the program of the European Central Bank, in addition to the tendency of investors to buy safe havens amid the current tensions between the US and China.
As of 10:56 GMT, the EURUSD pair traded at 1.0834 after hitting today's low at 1., set for its second straight daily decline. Against the pound, the European currency was down at 0.8705.
The euro widened its losses after the German Constitutional Court echoed its decision on the ECB's quantitative easing program, where the court partially rejected the ECB's quantitative easing program, the programme partially violated the Constitution and that some of those measures were invalid in Germany.
It should be noted that the ECB's bond-buying program is more aimed at boosting the Eurozone economy, but judges in Germany have seen it as interfering with Germany's economic and financial policy, which the ECB cannot intervene in.
The court said in a statement today that: “The ECB fails to conduct the necessary balancing of the monetary policy objective against the economic policy effects arising from the program. Therefore, the decisions at issue...exceed the monetary policy mandate of the ECB.”
However, the decision was not applied to the ECB's recent anti-pandemic program, a €750 billion scheme announced by the ECB to support the economy.
In the US, President Donald Trump accused China of causing the outbreak of the coronavirus in the United States, reinforcing fears of a new trade war.
Meanwhile, the dollar index, which trails the performance of the green
currency against six major currencies, surged 0.37 percent to trade at 99.94,
while the highest level recorded was at 100.07.