On Wednesday, the single currency (euro) slipped from a seven-week high against the dollar after a disappointing Spanish bond auction and weak euro zone economic data caused investors to bet the euro had risen too far, too fast in recent days.
Over the past few weeks, optimism that Greece will receive more money from its international lenders had buoyed the euro ut the rally lost steam as worries about Spain resurfaced.
“The euro is struggling to hold its ground ahead of the European Central Bank interest rate decision amid the negative developments coming out of the region,” said David Song, currency analyst at DailyFX in New York. “The single currency may continue to give back the rebound from the previous month as the fundamental outlook for the euro area deteriorates.”
The euro fell 0.1 percent to $1.3075 and rose 0.5 percent to 107.72 yen.