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Summary The euro has defied predictions of its demise by rising almost eight percent against the dollar since mid-January, in large part owing to Chinese confidence in the debt-ridden eurozone, analysts said.
However the single currencys fragile state was exposed on Thursday as it tumbled on receding expectations of a rate hike any time soon for the eurozone.The price action in euro/dollar has largely been one way since January 10th of this year, said Neil Mellor, an economist at financial group BNY Mellon.It was around this time that China began to express its very clear support for eurozone debt. A lot of the markets concerns about funding have been eased thanks to China, he told a foreign news agency.The European Financial Stability Facility -- established in June to help heavily-indebted eurozone members -- last month sold five-year bonds worth five billion euros ($6.8 billion) to help raise funds for Ireland.China is widely reported to have taken part after the worlds second biggest economy signalled its intention to do so last month.
