Investing.com - The euro slipped lower against the dollar on Thursday after comments by European Central Bank President Mario Draghi underpinned expectations for further stimulus, possibly as soon as next month.
EUR/USD touched lows of 1.0692, not far from the trough of 1.0673 set on Tuesday, the weakest level since April 23, and was last at 1.0723.
The euro weakened after Draghi warned that inflation pressures are weakening and the euro zone economy is facing clear ‘downside risks’ from the global economy.
"Signs of a sustained turnaround in core inflation have somewhat weakened," Draghi said.
He also said the ECB would re-examine the degree of monetary policy accommodation at its December monetary policy meeting.
The comments came during remarks to the European Parliament's economics committee.
The euro edged lower against the yen and the pound, with EUR/JPY dipping 0.08% to 131.86 and EUR/GBP easing to 0.7055.
Demand for the dollar continued to be underpinned by heightened expectations for a rate hike by the Federal Reserve next month.
The greenback has strengthened since last week’s robust U.S. jobs report for October paved the way for the Fed to hike rates next month and underlined the diverging monetary policy expectations between the Fed and other world central banks.
Investors were looking ahead to speeches by several Fed officials later in the day, including Chair Janet Yellen, for further indications on the prospect of a December lift off.
The U.S. was also to release the weekly report on initial jobless claims.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.15% to 99.2, re-approaching Tuesday’s highs of 99.55, the most since April 14.