Euro jumps vs dollar on Wall Street selloff

Frank van den Bergh | E+ | Getty Images

The euro jumped against the dollar on Thursday as growing losses on Wall Street led investors, who had held euro-funded positions in which the low-yielding currency is borrowed and sold in favor in higher-yielding ones, to buy back the euro.

Major U.S. stock indexes fell more than 2 percent on worries about the Chinese economy and falling oil prices.

The euro was up more than 1.19 percent against the greenback at $1.0906; it hit a one-month low of $1.0709 two days ago.

The single currency was up 0.41 percent at 128.26 yen, rebounding from 126.75 yen, which was the lowest level since mid-April set earlier on Thursday.