The euro tumbled over 1% against the U.S. dollar on Friday, to trade close to 12-year lows as the release of downbeat U.S. economic reports dampened risk sentiment and as concerns over the outcome of Greece's bailout talks persisted.
EUR/USD hit 1.0504 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.0517 down 1.10%.
The pair was likely to find support at 1.0493, Thursday's low and a 12-year low and resistance at 1.0717, the high of March 11.
The U.S. Department of Labor reported that producer prices fell 0.5% last month, confounding expectations for a 0.3% gain, after a 0.8% decline in January.
Core producer prices, which exclude food, energy and trade, also slipped 0.5% in February, compared to expectations for a 0.1% rise, after a 0.1% downtick the previous month.
Separately, the University of Michigan said that its consumer sentiment index fell to a four-month low of 91.2 this month from 95.4 in February, disappointing expectations for a rise to 95.5.
The University of Michigan also said that its inflation expectations for the next 12 months rose to 3.0% in March from 2.8% last month.
Meanwhile, the euro remained under pressure after the European Central Bank began purchasing securities on Monday as part of an asset-buying program amounting to €60 billion a month.
Concerns over the situation in Greece also weighed, as the eurogroup of finance ministers continued talks in Brussels to discuss a reform package put forward by Greece as part of its bailout review.
Greek Prime Minister Alexis Tsipras said on Thursday that the country will be able to fulfill its financial responsibilities, even if creditors don't a pay a tranche of aid.
The euro was steady against the pound, with EUR/GBP at 0.7143.
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