As the dollar weakens and doubts over a rate hike from the U.S. Federal Reserve increase, the euro's value is climbing. Once overlooked as an investment option due to the debt crises in the eurozone, the euro is currently a go-to currency mainly because of the Chinese economy inducing panic among investors all around the world. "The euro is being treated as a safe haven," said Goldman Sachs currency analyst Robin Brooks, as the euro reached its highest value against the dollar on Monday since January. However, Brooks said, "The recent price action is knee-jerk, there is no fundamental reason for the euro to rally."
In March, the European Central Bank (ECB) had undertaken a stimulus program, which resulted in the devaluation of the currency due to the increased amount of euros in circulation. The ECB does not want a stronger euro right now, as they intend to boost the economic recovery of the eurozone, something that they plan to do by revitalizing exports with a more competitive (in other words weak) currency. The eurozone exports have already taken a significant blow due to the Chinese economy slowing down and the Yuan's devaluation.