Euro recovers from 9-year low

The euro stabilized Monday during North American morning trade after falling to its lowest level in nine years despite a weak reading on German inflation for December, as investors bought euros to lock in profits.

The euro EURUSD, +0.13%  fell as low as $1.18 against the U.S. dollar in early trading Monday — its lowest level since March 2006 — and was last trading above $1.19.

The euro’s weakness has been exacerbated by the U.S. dollar’s broad-based strength, which has pressured currencies across the board. The ICE U.S. Dollar Index, a measure of the greenback’s strength against a trade-weighted basket of currencies, DXY, -0.08%  rose to a nine-year high Wednesday as investors globally bet on a recovery in the U.S. economy.

The British pound GBPUSD, +0.08% recovered to $1.525 Monday, after hitting a 17-month low of $1.51 earlier in the session.