Investing.com - The euro fell to 14-month lows against the dollar on Friday on sentiments that the U.S. is headed to tighter monetary policy while the eurozone is headed in the opposite direction.
In U.S. trading, EUR/USD was down 0.61% at 1.2845, up from a session low of 1.2831 and off a high of 1.2929.
The pair was likely to find support at 1.2754, the low from July 9, 2013, and resistance at 1.2994, Tuesday's high.
The dollar rallied against the euro on expectations for U.S. and European monetary policies to diverge.
Earlier this week, the Federal Reserve suggested it plans to close its bond-buying stimulus program next month and hike interest rates in 2015.
While some time will pass between those two policy moves, rate hikes could come quickly once the U.S. central bank moves to tighten, investors have concluded, which bolstered the greenback.
Meanwhile across the Atlantic, the euro came under pressure after the European Central Bank on Thursday said it allotted €82.6 billion to 255 bidders in its new Targeted Long Term Refinancing Operation, or TLTRO. The figure was well below the €100 to €150 billion predicted by analysts.
The European Central Bank recently cut interest rates and announced it would purchase asset-backed securities to stimulate the economy, which has softened the euro.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.12% at 0.7872, and down against the yen, with EUR/JPY down 0.44% at 139.85.
The pound strengthened earlier after Scottish voters rejected a referendum on independence and opted to remain part of the United Kingdom.
A record turnout of voters delivered a clear victory for the No campaign on Thursday, with 55% of Scottish voters rejecting independence and 45% backing it.
The pound eased off earlier highs, as many investors had already priced a No victory and sold the currency for profits.