Investing.com - The euro fell to session lows against the dollar on Wednesday after a senior European Central Bank official said the bank is seriously considering negative deposit rates
EUR/USD hit 1.3587, the lowest since Friday, and was last down 0.32% to 1.3594.
The pair was likely to find support at 1.3550 and resistance at 1.3651, the session high.
The drop in the euro came after ECB Executive Board member Benoit Coeure said the bank is considering a negative deposit rate very seriously. He added that the ECB does not see a threat of deflation in the euro area, but sees slowly increasing inflation.
The euro was sharply lower against the pound, with EUR/GBP down 0.85% to 0.8219.
Sterling was boosted after the Bank of England outlined a new forward guidance policy on Wednesday and upgraded its forecast for economic growth this year.
The BoE indicated that it will keep interest rates on hold at record lows of 0.5% for at least another year, despite upgrading its U.K. economic growth forecast for 2014 to 3.4% from 2.8%.
The bank said it will not raise rates until the spare capacity in the U.K. economy has been fully absorbed, which it does not see happening until 2015.
Elsewhere, the euro fell to session lows against the yen, with EUR/JPY dropping 0.76% to 138.88, down from session highs 140.05.