Investing.com - The euro rose to two-week highs against the dollar and hit the highest level in a week against the pound after the European Central Bank said it had not discussed extending its stimulus program at its Thursday meeting.
EUR/USD hit highs of 1.1327 immediately following the remarks, before pulling back to 1.1270.
EUR/GBP hit highs of 0.8493, the most since September 1.
The ECB did not discuss extending its quantitative easing program beyond March 2017 despite a small downward revision to its growth forecast, President Mario Draghi said.
Draghi said current monetary policy is effective and the changes to the banks growth forecast are not so substantial as to warrant a decision to act.
Draghi confirmed that the ECB will run its monthly asset-purchase program until March 2017 or beyond if needed, until “a sustained adjustment in the path of inflation” has been achieved.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 94.78, not far from the day’s lows of 94.45.
The dollar found some support after the Labor Department reported that initial jobless claims unexpectedly fell last week, pointing to sustained strength in the labor market, despite slowing jobs growth.
Initial claims for state unemployment benefits decreased 4,000 to a seasonally adjusted 259,000.
The dollar remained on the defensive after a report earlier in the week showing that U.S. service sector activity slowed in August to its lowest level since early 2010.
The weak data, coming after last week’s lackluster U.S. jobs report clouded the outlook for the U.S. economy and indicated that the Federal Reserve may hold off raising interest rates for longer.
The dollar was weaker against the yen, with USD/JPY at 101.67.