Investing.com - The euro dropped to nearly two-year lows against the U.S. dollar on Thursday, as remarks by European Central Bank President Mario Draghi weighed heavily on the single currency, while the greenback remained broadly supported.
EUR/USD hit 1.2700 during European afternoon trade, the pair's lowest since November 2012; the pair subsequently consolidated at 1.2715, retreating 0.51%.
The pair was likely to find support at 1.2660 and resistance at 1.2864, Wednesday's high.
The euro was hit after ECB President Mario Draghi reiterated on Thursday the bank's commitment to act with more policy measures to boost inflation in the euro zone.
"We stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation," Draghi said.
A day earlier, Mario Draghi had already vowed to keep monetary policy "accommodative" for as long as needed, and to use every tool at the ECB's disposal to fight deflation.
Meanwhile, the dollar found further support after Dallas Federal Reserve President Richard Fisher said the U.S. central bank may start raising interest rates around the spring of 2015, at the earlier end of market expectations.
The greenback had strengthened broadly after data on Wednesday showed that U.S. new home sales data rose 18.0% last month to 504,000 units, the highest level since May 2008.
Earlier in the week, a report showed that the U.S. manufacturing sector expanded in September, matching the rate of growth seen in the previous month, which was the strongest in over four years.
The euro was also near two-year lows against the pound, with EUR/GBP down 0.27% to 0.7801.
Later in the day, the U.S. was to release data on durable goods orders, as well as the weekly report on jobless claims.