Wednesday saw the common currency of the European Union touch its lowest value in 14 days against the world's reserve currency following increased Spanish borrowing expenses at an auction, Reuters reports.
Minutes from the March 13 meeting of the Federal Open Market Committee of the U.S. Federal Reserve indicated the body is unlikely to soon implement monetary easing, which also pulled down the value of the euro.
"The euro is likely to adjust lower on the back of the euro zone economy underperforming, which will require the ECB to run a loose policy stance," currency economist Lee Hardman with Bank of Tokyo-Mitsubishi told Reuters. "There could potentially be a slightly more dovish stance from the ECB today, and that contrast with the Fed will provide euro/dollar with some downward momentum."
Spain fell under scrutiny as the next euro zone nation to be victimized by the sovereign debt crisis after a government auction sold 2.6 billion euros in bonds, an amount lower than the target range.