The euro declined on Thursday, after the European Central Bank trimmed its inflation and growth targets but hinted it may expand its quantitative easing programme.
The euro dropped 1 per cent and was picking up speed after Mario Draghi’s press conference on Thursday.
It was trading at $1.1128 after the conference.
In the press conference, Mr Draghi said the ECB expected the economic recovery to continue, but at a weaker pace than expected as a result of the slowdown in emerging market economies, which is bringing down global growth and the foreign demand for euro area exports.
The ECB revised GDP growth for 2015 down to 1.4 per cent from 1.5 per cent. Meanwhile the growth target for 2016 dropped to 1.7 per cent from 1.9 per cent and the target for 2018 dropped to 1.8 per cent from 2 per cent.
Meanwhile, the inflation target for 2015 was revised down to 0.1 per cent from 0.3 per cent. The target for 2016 was just 1.1 per cent, from 1.5 per cent, and the ECB is now targeting 1.7 per cent from 1.8 per cent in 2017.
Elsewhere, European bond yields had some quick falls as Mr Draghi struck a dovish tone and signalled he could take more action to support the markets.
10 year German Bund yields fell 4bp to 0.73 per cent, while Spanish 10 year yields dropped 6bp to 2.08 per cent.