Investing.com

Investing.com - The euro remained close to two-week lows against the dollar and the yen on Thursday, after data showed that the annual rate of German inflation slowed unexpectedly in February, while concerns over tensions in Ukraine also weighed.



EUR/USD hit 1.3643, the lowest since February 13 and was last down 0.19% to 1.3659.



The pair was likely to find support at 1.3600 and resistance at 1.3694, the session high.



Official data showed that the annual rate of consumer price inflation in Germany slowed to 1.2% in February from 1.3% in January. Analysts had expected the annual inflation rate to remain unchanged.



German consumer prices rose 0.5% in February from a month earlier, below forecasts for a gain of 0.6%.



The lackluster data added to concerns over the threat of deflation in the region, ahead of euro zone inflation data for February, due for release on Friday.



The European Central Bank is to hold its monthly policy meeting next week, amid speculation that it will tighten monetary policy again in order to safeguard the fragile recovery in the region.



Earlier Thursday, data confirmed that Spain’s economy grew 0.2% in the fourth quarter, below the initial estimate for 0.3% growth.



A separate report showed that lending to households and firms in the euro zone fell in for a second month in January.



Meanwhile, political and military tensions between Russia and Ukraine continued to curb risk appetite after Ukrainian President Viktor Yanukovych was ousted last week.



On Wednesday Russian President Vladimir Putin ordered 150,000 Russian troops to begin military exercises in central and western Russia, near the border with Ukraine.



Political uncertainty in Ukraine sparked renewed concerns over the outlook for emerging markets, and pressured the Russian rouble to five year lows against the dollar. Meanwhile, Ukraine’s hryvnia fell to record lows after the central bank abandoned its policy of supporting the currency.



Elsewhere, EUR/JPY hit lows of 138.80, the weakest since February 12 and was last down 0.66% to 139.17.



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