Investing.com - The euro fell against the dollar on Thursday after European Central Bank President Mario Draghi suggested fresh easing measures may take effect at the bank''s June policy meeting.
In U.S. trading, EUR/USD was down 0.37% at 1.3858, up from a session low of 1.3850 and off a high of 1.3994, its strongest level since October 2009.
The pair was likely to find support at 1.3812, last Friday''s low, and resistance at 1.3994, the earlier high.
The European Central Bank earlier left interest rates unchanged at 0.25%, though the euro dropped after Draghi said the ECB governing council is comfortable with acting at its next meeting in June, after the bank has published fresh forecasts for inflation and growth.
Draghi attributed weak inflation rates to food and energy prices, but added that the strong euro and weak domestic demand are also pushing down inflation.
He reiterated that the ECB does not have a target for the euro exchange rate but stressed that the bank would closely monitor exchange-rate developments.
The euro rose to two-year peaks against the dollar earlier after Draghi reiterated the bank’s forward guidance, saying that interest rates will remain at their present, or lower, levels for a considerable time, but stopped short of indicating that fresh easing was imminent.
The ECB chief said the latest data shows that the European economy is recovering, in line with the bank''s forecasts, but also pointed to a prolonged period of low inflation, followed by only a gradual rise in prices.
Meanwhile in the U.S., the Department of Labor reported that number of individuals filing for unemployment assistance last week fell by 26,000 to 319,000 from the previous week’s revised total of 345,000.
Analysts had expected jobless claims to fall by 20,000 to 325,000.
The euro was down against the pound, with EUR/GBP down 0.27% to 0.813, and down against the yen, with EUR/JPY down 0.59% at 140.89.
Earlier Thursday, The BoE’s Monetary Policy Committee voted to keep interest rates on hold at their current record low of 0.5%. The bank also made no change in its quantitative easing program, which remains at £375 billion.