The euro fell to a two-month low against the dollar today, on weak economic data and speculation that the ECB could open the door to a major easing of monetary policy starting next week.
The single currency was down 0.1 percent at $ 1.1137, having earlier hit $ 1.1127, its lowest level since May 30. The euro hit a two-year low of $ 1.1105 in May.
The euro has lost 2 percent of its value since the beginning of the month as investors took into account the possibility of a larger decline in the cost of borrowing in the euro zone below zero. The stronger dollar generally contributed to the loss of the euro.
The dollar gained after Washington reached an agreement to lift government borrowing, which analysts say could limit the Federal Reserve's interest rate cut.
The dollar steadied against a basket of currencies at 97.704 after rising to a five-week high of 97.76 earlier, following gains of 0.5 percent the day before.
The pound rose slightly from its low levels after Boris Johnson won the race for Britain's next prime minister and investors focused on Britain's possible withdrawal from the EU without an agreement.
In the latest trading, the Sterling rose 0.3 percent to $ 1.2479 but did not move far from a 27-month low of $ 1.2382 last week.
The British currency advanced against the euro 0.4 percent to 89.290 pence.