Investing.com - The euro was at nine-year lows against the stronger dollar on Thursday a day after data showing euro area inflation turned negative in December, while the dollar remained stronger after a better-than-forecast private sector jobs report.
EUR/USD was at 1.1815, close to overnight lows of 1.1801, the weakest since January 2006.
The single currency remained under pressure after data on Wednesday showing that the annual rate of euro zone inflation fell by 0.2% in December, down from 0.3% in November. Economists had expected an annual decline of 0.1%.
It was the first fall in the annual rate of inflation since October 2009.
The decline in consumer prices added to expectations that the European Central Bank could implement quantitative easing as soon as its next meeting on January 22. Late last week ECB President Mario Draghi said the risk of it not fulfilling its mandate of price stability is higher now than six months ago.
Demand for the dollar continued to be underpinned after a report on Wednesday showed that the U.S. private sector added a larger-then-forecast 241,000 jobs in December. The upbeat data boosted the outlook for the U.S. recovery and raised expectations for a strong reading of the government nonfarm payrolls due on Friday.
USD/JPY was up 0.52% to 119.86 from 119.24 late Wednesday.
Wednesday’s minutes of the Federal Reserve’s December meeting did little to alter expectations that U.S. interest rates will start to rise later this year.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.23% to 92.43, the highest since November 2005.