By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- The euro continued its fall on Friday, trading at a 14-month low after the European Central Bank the prior day cut interest rates and announced a "private QE" program in an effort to fight off low inflation.

The shared currency (EURUSD) fell $1.2939 -- the lowest level since July 2013 -- down from $1.2944 in late North American trade on Thursday.

The euro weakness came after the ECB took markets by surprise on Thursday and both cut key interest rates by 10 basis points and said it would start buying asset-backed securities and covered bonds in October. ECB President Mario Draghi said the measures were taken to stimulate growth and boost consumer prices as inflation has been below the central bank's target of close to, but below 2% for a while.

In other currency action, the dollar (USDJPY) fell slightly against the yen to buy Yen105.22, from Yen105.26 late Thursday in New York. Later on Friday, investors will be watching August labor market data from the U.S., with the nonfarm-payrolls report and unemployment rate due at 8:30 a.m. Eastern Time.

The pound (GBPUSD) declined to trade at $1.6322, compared with $1.6344 on Thursday.

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