(Reuters) - The euro touched a fresh two-week low against the dollar and Italian government bond yields fell further on Wednesday in the wake of a Bloomberg report that said the European Central Bank would reduce its outlook on inflation and is in discussions on a new loan programme.
The single currency hit $1.12855 which was the lowest level since Feb. 19. It was last down 0.02 percent. at $1.13045.
At 8:53 a.m. EST (1353 GMT), the yield on 10-year Italian sovereign debt was 2.66 percent, down 4.6 basis point from late on Tuesday.
Reporting by Richard Leong; Editing by Chizu Nomiyama