The euro fell against the dollar on Wednesday, a day before a European Central Bank policy-setting meeting, on concerns the bank may flag future interest rate cuts.
The ECB is widely expected to keep policy unchanged at its meeting on Thursday, though President Mario Draghi may use the news conference afterward to hint at prospective policy easing.
Projections for both growth and inflation in the euro zone are likely to be on the low side, giving the central bank room to cut rates in the coming months.
The dollar extended gains against the euro and yen Wednesday after a report showed U.S. private employers added 198,000 jobs in February, another sign of improvement in the labor market.
Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 170,000 jobs. January's private payrolls were revised up to an increase of 215,000 from the previously reported 192,000.
While the jobs data was important ahead of the U.S. non-farm payrolls report on Friday, the ECB remained the focus in the nearer term.