The single currency recovered on Thursday from its lowest in last two years. The International Monetary Fund was reported to explore the options for a bailout package for Spain which created hopes for investors. There was also news that IMF’s European department is planning for bailout package of $371 billion for Spain.

The euro gained to 12.4 against the US dollar but later settled to 1.2369 as compared to 1.2369 on Wednesday’s North American trading session. The single currency has declined 6.6 percent versus the US dollar in May. Yields on 10 year Spanish bonds declined 16.1 basis points to 6.537 percent.

The dollar index DXY which tracks the US dollar’s performance against its six major rival currencies fell to 83.035 on Thursday as compared to 83.053 on Wednesday’s late trading hours. The dollar index has gained almost 5 percent in the month of May which happens to be its best performance since September 2011.

Among other currencies, the British Pound plunged to 1.5416 against the US dollar as compared to 1.5488 while against the Japanese yen the greenback fell to 78.34 as compared to 79.09 in prior session. The pair GBP/USD has declined 5 percent in May while USD/JPY is down 2.4 percent.