After hitting a three-and-a-half-month low, the euro stabilized against the dollar on Wednesday. Traders expect the European Central Bank (ECB) to defend its loose monetary policy on Thursday.

The US currency is supported by its safe haven status as the resumption of Covid-19 infections weighs on the outlook for global growth. Around 9:10 a.m. GMT (11:10 a.m. CET), the euro lost 0.04% to 1.1776 dollars. In early European trading, the euro fell to its lowest since early April at $1.1752. The dollar index, which compares the greenback to other major currencies, took 0.3% since the start of the week. The market believes that the European institution will insist on the need to support the economy of the euro zone by keeping rates historically low and its program of asset purchases. Higher rates make the currencies more attractive to forex traders who are hanging on to the ECB's decision on Thursday.