Investing.com - The euro fell to two-week lows against the dollar and the yen on Thursday as worries over heightened tensions in Ukraine weighed on sentiment, underpinning investor demand for safe haven assets.
EUR/USD hit 1.3643, the lowest since February 13 and was last down 0.26% to 1.3650.
The pair was likely to find support at 1.3600 and resistance at 1.3694, the session high.
Market sentiment was hit by fresh tensions between Russia and Ukraine after Ukrainian President Viktor Yanukovych was ousted last week.
On Wednesday Russian President Vladimir Putin ordered 150,000 Russian troops to begin military exercises in central and western Russia, near the border with Ukraine.
Geopolitical tensions sparked renewed concerns over the outlook for emerging markets, pressuring the Russian rouble to five year lows against the dollar, while Ukraine’s hryvnia fell to record lows after the central bank abandoned its policy of supporting the currency.
Sentiment on the common currency was also hit after data on Thursday confirmed that Spain’s economy grew 0.2% in the fourth quarter, below the initial estimate for 0.3% growth.
A separate report showed that lending to households and firms in the euro zone fell in for a second month in January.
Investors were looking ahead to German inflation data due out later in the session, as well as euro area inflation figures on Friday amid concerns over the threat of deflation in the region.
The European Central Bank is to hold its monthly policy meeting next week, amid speculation that it will tighten monetary policy again in order to safeguard the fragile recovery in the euro zone.
Elsewhere, EUR/JPY hit lows of 138.80, the weakest since February 12 and was last down 0.77% to 139.01.