Euro rose on Wednesday against a basket of global currencies to resume its rally against USD, which ended yesterday with correction activity and profit taking from the highest level in two weeks, after the recovery of US currency levels in light of the large selling of US stocks on Wall Street, The gains exacerbate the confrontation between the EU and the Italian government over the budget for 2019.

Euro rose against the dollar by more than 0.2% as of 08:08 GMT, trading at $ 1.1395, the opening price of the day at $ 1.1369, the highest at $ 1.1401 and the lowest at $ 1.1362.

Euro lost 0.7% against the greenback on Tuesday, its first loss in six days, with a correction and profit taking after recording a two-week high of $ 1.1472 earlier in the session.

The dollar index fell 0.2% on Wednesday, resuming its losses after a temporary halt yesterday after rebounds from a two-week low of 95.91 points, reversing the greenback again against most major and minor currencies.

The US currency has been under negative pressure since late last week as a number of Federal Reserve members expressed concern about the global economic slowdown and its potential negative impact on the path of US economic growth.

Italy’s financial sector fell as Italian banks fell to their lowest level in two years, widening the gap between German and Italian bond yields as concerns over a worsening standoff between the European Union and the Italian government over Rome’s expansionary budget of 2019.

The worsening confrontation between Brussels and Rome could lead to many negative effects on the path of economic growth in the euro zone, which will eventually lead to a delay by the ECB to implement a plan to raise interest rates in 2019.