The euro was headed for a second weekly decline today after the head of the European Central Bank said economic growth was likely to be weaker than previously expected. 

ECB President Mario Draghi blamed factors ranging from China's slowdown to Brexit for the slowdown. 

The central bank left the bloc's interest rates unchanged as expected yesterday. 

The euro, which has traded in a range of $1.12 to $1.16 for the past three months, weakened as investors questioned whether the ECB would be able to raise interest rates this year, as its current guidance indicates. 

Analysts expect the euro to underperform in the near term as monetary policy is expected to remain accommodative this year. 

The euro was broadly flat today at $1.1327, close to yesterday's two-month low of $1.1289. 

Sterling reached an 11-week high today after a report that Northern Ireland's Democratic Unionist Party had privately decided to offer conditional backing for Prime Minister Theresa May's Brexit deal next week. 

The Sun report pushed the pound 0.4% higher to $1.3114, its highest since November 8. 

Sterling has risen about 1.8% this week, moving above $1.30 to the dollar on hopes Britain will avoid a no-deal Brexit on March 29. 

The dollar is facing a tough year as growth at home and globally comes under pressure and the Federal Reserve moves closer to pausing its rate-hike cycle. 

Interest rate futures are pricing in no rate change by the Fed during 2019, a turnaround from the four increases it last year in a major boost to the dollar.