The euro slid by as much as 0.93 percent against the dollar, falling to a five week low of $1.2885, as European Central Bank (ECB) President Mario Draghi offered the market "explicit" forward guidance, pledging key rates would remain at present or lower levels for an "extended period of time."
Draghi rattled forex markets by saying the ECB's governing council took "unprecedented steps" in giving forward guidance of the bank's plans, putting a downward bias on interest rates for the foreseeable future.
"An extended period of time is an extended period of time, it is not six months, or 12 months," said Draghi, when pressed for a time frame by journalists. "Our exit is very distant."
Speaking at a press conference following the ECB's decision to keep its main refinancing rate at a record low of 0.5 percent and deposit rates unchanged, Draghi said he was open to all rate options, including a negative deposit rate.