Euro trims losses and stabilizes against US dollar

Euro stabilized against US dollar on Tuesday after hitting its lowest level against the greenback in nearly 26 months, earlier today.

Dollar was boosted by the US Federal Reserve decision to cut interest rate by a quarter of a point to 2.00 percent or 2.25 percent from 2.50 percent, and the central bank hinted another cut before the end of the year.

Federal Reserve Chairman Jerome Powell said the rate cut came to counter any signs of a slowing economic growth and weak inflation, but it did not mean the central bank would launch a long string of monetary policy easing.

Markets have been closely following developments in global markets, especially after new threats by US President Donald Trump to impose more tariffs on China.

In terms of trade, at 17:46 GMT, EUR/USD stabilized at 1.1083, and hit a high of 1.109 and a low of 1.1028, as it hit 1.1034 earlier today, which is the lowest in 26 months.