The common currency of the European Union edged down on Thursday against the world's reserve currency amid speculation the region's central bank will leave interest rates unchanged during the Thursday policy meeting, Bloomberg reports.
The euro was about 0.4 percent from touching its 11-week trough against the U.S. dollar as prospects remained likely borrowing costs will stay at 0.25 percent.
"We have seen a hefty decline, but overall we should not be too worried because the fundamentals of the market have not changed much. The outlook for the equity market is staying constructive, but we need to be cautious," head of equity strategy Gerhard Schwarz with Baader Bank told Reuters on Thursday. "The ECB will likely refrain from cutting rates today, but they will make it clear that they stand ready to act, should things deteriorate from here. And that should give the market some reassurance."
The euro was moderately changed after scraping its lowest value since this past November 22 on Monday.
A surprise rate cut by the ECB remains in play to confront deflation, according to analysts, analysts and economists cited by Reuters.
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