The US dollar hit its lowest against the euro in over two weeks on Wednesday after the European Central Bank kept monetary policy steady despite recent market volatility and Bund yields extended their rise. The ECB sees no reason to adjust its monetary policy stance in response to a recent rise in bond yields in Europe, ECB President Mario Draghi told a news conference after the bank held interest rates as expected.
"The ECB's not currently considering trying to increase monetary policy stimulus. They're not worried about volatility," said Brian Daingerfield, currency strategist at the Royal Bank of Scotland in Stamford, Connecticut. The euro was last up 0.9 percent against the dollar at $1.12500, hovering near a more than two-week high of $1.12725, after posting its second biggest daily gain since October 2011 on Tuesday.
The dollar rose slightly against the yen at 124.220 yen , and rose against the Swiss franc at 0.93485 franc after mixed US economic data. The dollar index , which measures the greenback against a basket of major currencies, was on track for a second straight losing session. The dollar index was last down 0.42 percent at 95.421.