The 16-nation euro bought $1.4880 in European morning trading, down from the $1.4940 in late New York trading Wednesday. Before falling lower Wednesday, the euro had jostled with the $1.50 mark.

The British pound also fell to $1.6682 from $1.6718, while the dollar fell to 89.08 Japanese yen from 89.48 yen late Wednesday in New York.

On Wednesday, St. Louis Federal Reserve President James Bullard said the Fed "the FOMC did not begin policy rate increases until 2.5 to 3 years after the end of the past two recessions." FMOC stands for Federal Open Market Committee, which sets interest rates at the Federal Reserve.

Assuming the Fed acted similarly to how it acted in the past, that could mean it wouldn't start increasing rates until 2012, Bullard said.

Interest rates are at record lows around the world and at around zero percent in the U.S. Interest rates in the countries that share the euro are also at a low of 1 percent, but still better than in the U.S. As a result, investors have been moving assets into the euro to earn better returns, driving the dollar lower in recent weeks.

"Yesterday's failure to get above $1.5000 has seen the euro drift back in the Asia session," Michael Hewson, a currency analyst at CMC Markets said in a Thursday research note.

"With a series of falling highs over the last weeks' trading, there is a strong possibility that we could see a drift back toward $1.4820 over the next few days, while below the $1.4990 trend line resistance, from the $1.5048 highs of the 11th November."