The U.S. dollar fell against the euro on Wednesday after the head of the European Central Bank said the ECB needed more time to assess whether to expand its stimulus program.
ECB President Mario Draghi said the bank was ready to act but needed more time to determine whether the slowdown in emerging markets was likely to be temporary or permanent and to assess the driving forces behind declining commodities prices and recent turbulence in financial markets.
Draghi's comments to the European Parliament's Committee on Economic and Monetary Affairs sent the euro higher against the dollar after the common currency earlier hit its lowest level against the greenback in two and a half weeks at $1.11050.
The euro also rallied to a one-week high of 73.47 pence against the sterling after Draghi's remarks.
"The ECB is really in no rush to add stimulus," said Alfonso Esparza, senior currency strategist at Oanda in Toronto.