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The euro rebounded against the U.S. dollar and Japanese on Tuesday on the back of the rise in the Dow Jones Index which ended the day up 270 points after falling 679 points on Monday. The single currency initially declined to 1.2562 in line with the weakness in Asian equity markets before rising in Europe and U.S. session on short-covering. Trading volume was relatively thin ahead of the European Central Bank interest rate decision due out on Thursday (ECB is expected to reduce interest rates by 50 basis points).
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