On Tuesday, euro was traded near seven-month low against the dollar, despite data which showed that business confidence of German investors rose sharply this month, as divergent political forecasts in relation to Fed and the European Central Bank put pressure on the single currency.
EUR/USD hit the low of 1.0643, its lowest level since April 16, and is now at 1.0662, down 0.22% today.
ZEW Centre for Economic Research said its index of German economic sentiment improved this month, a month after the scandal with Volkswagen (DE: VOWG) put a sharp pressure on sentiment.
The index of German economic sentiment by ZEW rose to 10.4 from 1.9 in October, which was a 12-month low.
Economists had forecast a figure of 6.0.
The optimistic data showed that growth in the Eurozone's largest economy will maintain the given vector in the last quarter of 2015.
On Tuesday, euro came under renewed selling pressure as investors turned their attention to the diverging forecasts for monetary policy between the Fed and other central banks around the world.
Demand for the dollar is still supported by expectations that the Fed will raise interest rates next month.
US inflation data, scheduled for release today, is expected to bring further clarity about the prospects for a rate hike in December.
At the same time the European Central Bank, according to forecasts, will expand its quantitative easing program, and possibly will lower rates at its December meeting.
The euro remained under pressure amid fears that terrorist attacks in Paris could weaken an already fragile economic recovery in the region.
The single currency went lower against the yen and the pound; EUR/JPY has weakened by 0.12% to 131.44, and EUR/GBP fell 0.18% to 0.7016.
The USD index, which tracks the US currency against a basket of six major rivals, is at 99.59, after rising earlier to a seven-month peak of 99.74.