Investing.com - The euro fell to 14-month lows against the dollar on Thursday after the European Central Bank cut interest rates across the euro zone and said it was launching an asset-backed securities program in an attempt to stave of slowing growth and inflation. EUR/USD hit 1.2996, the lowest level since July 15 2013 and was last down 0.98% to 1.3020. The euro fell sharply after the ECB slashed its benchmark interest rate to a record-low 0.05% from 0.15%, surprising most market analysts who had expected no change. The central bank also lowered its deposit facility rate to -0.20% from -0.10% previously and its marginal lending rate to 0.30% from 0.40%. The euro extended losses after ECB President Mario Draghi said the bank will begin an asset-backed securities program, to purchase non-financial assets, including covered bonds. Draghi said bank acted after long term inflation expectations deteriorated in August .He said the program will add to the range of measures taken in recent months and will support the banks forward guidance on rates. The ECB cut its forecast for growth this year to 0.9% down from 1.0% previously and cut the forecast for 2015 to 1.6% from 1.7% The bank also lowered its inflation forecast for this year to 0.6% from 0.7% in June but left its 2015 inflation forecast unchanged at 1.1%. The euro was also sharply lower against the yen and the pound, with EUR/JPY dropping 0.87% to 136.66 and EUR/GBP down 0.85% to 0.7920. In the U.S., the ADP nonfarm payrolls report showed that the private sector added 204,000 jobs in August, missing expectations for jobs growth of 220,000. Another report showed that the number of people who filed for unemployment assistance in the U.S. last week rose by 4,000 to 302,000 from the previous week’s total of 298,000. Analysts had expected jobless claims to rise by 2,000 to 300,000 last week.

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