The euro jetted past $1.20 and was on course for its biggest daily percentage gain against the U.S. dollar in nearly two weeks on Thursday amid European Central Bank indications a decision on tapering stimulus is likely in October, while the dollar slipped against the yen.
The ECB must take into account the weakening of inflation due to the strong euro as it prepares to wind down its unprecedented stimulus program, its chief Mario Draghi said after the ECB kept rates at record lows and confirmed that asset purchases would continue at least until December.
Draghi reiterated, however, that policymakers would decide on tapering this autumn, adding: "Probably the bulk of these decisions will be taken in October."
The dollar index, which measures the greenback against a basket of six major rivals, fell as much as 1 percent to its lowest since January 2015 of 91.405. It was last down 0.81 percent at 91.54.