Euro fell in European trade against a basket of major rivals, extending losses for the second day against dollar and backing off 17-month peak on profit-taking following less aggressive remarks by ECB officials.
Such remarks hurt chances of upcoming interest rate hikes and bolstered the case that European interest rates might approach neutrality soon.
EUR/USD fell 0.3% to 1.1196, with a session-high at 1.1236, after losing 0.1% yesterday on profit-taking away from a 17-month peak at 1.1275.
Some ECB member took a more cautious stance on extended policy tightening this year, hurting chances of a 0.25% rate hike next week.
President of De Nederlandsche Bank Klaas Knot said the ECB will monitor inflation signs closely at upcoming months to avoid an overly tightening monetary policy.
The dollar index rose 0.3% on Wednesday for a second session off 15-month lows against a basket of major rivals.
Such recovery comers after US retail sales data which showed sales missed estimates in June, but consumers maintained their spending in other areas, showing flexibility.
