Investing.com - The euro dropped against the U.S. dollar in quiet trade on Friday, to trade near 14-month lows as demand for the greenback remained broadly supported after the Federal Reserve's most recent policy statement.
EUR/USD hit 1.2847 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.2853, retreating 0.54%.
The pair was likely to find support at 1.2833, Thursday's low and a 14-month low and resistance at 1.2981, the high of September 17.
Demand for the greenback remained supported after the Fed on Wednesday cut its monthly bond-buying program by another $10 billion following its two-day policy meeting on Wednesday, keeping the program on track to finish next month.
Markets interpreted the Fed's statement as hawkish, despite policymakers maintaining language suggesting that rate hikes would not happen for a "considerable time."
Meanwhile, sentiment on the euro remained vulnerable 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. That was well below the €100 to €150 billion predicted by analysts.
The euro was also lower against the pound, hovering close to a two-year trough with EUR/GBP down 0.23% at 0.7863.
The pound strengthened broadly after Scottish voters rejected independence, averting a break-up of the United Kingdom and prolonged uncertainty.
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.
Uncertainty over what currency an independent Scotland would use, as well as concerns over how much of the U.K. national debt it would take on had sparked a broad based selloff in sterling last week.