Euro rose in European trade against dollar following the heftiest daily loss in 2023 yesterday, as the Credit Suisse bank crisis hammered the euro off four-week highs.
The concerns calmed down following the Swiss National Bank's assurances of providing needed liquidity to Switzerland's second bank, which announced it'll borrow 50 billion francs from the central bank.
Such a crisis is casting a shadow on the European Central Bank's upcoming meeting, with traders reducing bets on a 0.5% rate hike in March.
EUR/USD rose 0.4% to 1.0622, with a session-low at 1.0573, after losing 1.5% yesterday, the first loss in five days, after hitting four-week high at 1.0760.
Credit Suisse
In the newest hit for investor confidence in the global banking sector, with the Credit Suisse stock slumping 30% to record lows after its largest shareholder said it won't provide anymore support for the bank.
The Saudi National Bank ruled out another aid package for the Swiss Bank, due to regulations.
Credit Suisse is striving to recover from a series of scandals that hurt investor and client confidence in the bank, and lately was damaged from a sector wide tumble in the banking sector after the SVB collapse in the US.
The ECB
Investors await the European Central Bank's meeting on Thursday amid the ongoing global banking crisis.
The ECB is already contacting banks under its purview to investigate them about their exposure to Credit Suisse.
The ECB is still likely to hike interest rates by 50 basis points for the third straight time to 3.5%, the highest since 2008.