On Thursday, euro strengthened against the dollar and other major currencies, as fresh incentives promulgated by the European Central Bank did not meet market expectations.
EUR/USD jumped 1.98% to 1.0824 after falling to 1.0577 earlier, being close to 7.5-month low of Wednesday at 1.0549.
The Board of Directors of the European Central Bank lowered its deposit rate to -0.30% from -0.20%, as many expected.
The main refinancing rate remained at the previous record low of 0.05%, in line with market forecasts. In addition, the central bank kept the marginal rate (at which banks borrow funds from the ECB) at the level of 0.30%.
ECB President, Mario Draghi, said the bank changed the deadline of asset purchase program from September 2016 to the end of March 2017, and stated that it could be extended if necessary.
ECB expanded the list of assets that it can acquire, adding the municipal and regional bonds. In addition, the central bank intends to reinvest the proceeds of quantitative easing.
The pace of monthly QE program remained unchanged at around € 60 billion, while the markets were hoping for its expansion.
The euro strengthened against other major currencies: EUR/JPY jumped 1.85% to 133.01, and EUR/GBP pair rose 1.16% to 0.7181.
The euro also strengthened against the Swiss franc; EUR/CHF fell to 1.0899 from 1.0797 yesterday.
The USD, which tracks the US currency against a basket of six major rivals, fell 1.16% to 98.88, departing from eight-month peak of 100.54 from the previous session.
US data showed an increase in the number of claims for benefits in the US last week, higher than expected. Nevertheless, the figures still prove a growth in employment sector.
US Department of Labor said that the number of initial applications for unemployment benefits for the week ended November 28 rose 9000 to 269 000 from 260 000 the previous week. Analysts had forecasted a rise in the number of applications by 8000.
Market focus remains on Friday's report on US non-farm payrolls in November, as investors await fresh indications of the likelihood of a rate hike in December.
The comments of Fed chief, Janet Yellen, who on Wednesday said that it "looks forward to" rise the interest rate, stressed the divergent forecasts for the monetary policy of the Fed and other major central banks.