Euro gaining ground against dollar

Bargain hunting is helping drive the euro's recent surges against the U.S. dollar, though the dollar has structural advantages that are likely to keep it from losing too much ground, a leading Italian business and management expert has said, reported Xinhua.

Two recent surges of the euro have put it back on top for now, with trading ending Thursday with a dollar buying just 0.983 euros, the euro's strongest daily finish since mid-August, when the dollar reached parity with the euro. The U.S. currency has mostly stayed above the value of the euro since then, peaking at 1.043 euros per dollar in late September.

Antonio Majocchi, professor of global management with the department of business and management at Rome's LUISS University, attributed these surges to bargain hunting on the part of investors and companies.

As European products become cheaper, they attract capital that supports the currency -- and that may explain these recent gains, he said.

"The European economy is still a large share of the world's economy," he added.

But in the long run, the dollar will remain strong, he said.

Data shows that despite its recent surges, the euro is still far weaker than its historical averages. A dollar bought 0.879 euros at the start of this year and at its highest point ever, in 2008, a dollar bought just 0.626 euros.