By Anora Mahmudova, MarketWatch , Kosaku Narioka

The euro fell below $1.06, trading at its lowest level since April, after a news report said the European Central Bank might widen the scope of its bond-buying program or implement other easing measures, including two-tier charges for banks hoarding cash.

The two-year yield on German government debt fell further to yield negative 0.4%, taking the euro , which is closely correlated with it to trade at $1,0579.

"For currency traders such talk only reinforced the idea of policy divergence between the ECB and the Fed," said Boris Schlossberg, managing director of FX strategy at BK Asset Management, in emailed comments.

"The EUR/USD now finds itself at a key juncture as the 1.0500-1.0600 corridor represents multiyear lows which were tested early in the year and will no doubt be tested now," Schlossberg said.

Reuters reported (http://uk.reuters.com/article/2015/11/25/uk-ecb-policy-meeting-idUKKBN0TE0T220151125) that European Central Bank policy makers have considered adding purchases of regional bonds and even rebundled loans with a risk of nonpayment.

Schlossberg noted that the moves this week may also be exacerbated by low liquidity due to holiday-shortened week. U.S. financial markets will be closed Thursday for the Thanksgiving Day holiday.

The U.S. dollar, which declined in Asia trade amid geopolitical uncertainty in the Middle East, rebounded, with the ICE Dollar Index rising 0.5% to above 100.

The dollar rose to Yen122.85 from Yen122.52 late Tuesday in New York and held gains after a number of positive economic data releases.

Weekly jobless claims (http://www.marketwatch.com/story/us-jobless-claims-drop-12000-to-260000-2015-11-25)fell to 260,000 last week, near the lowest level in years. Consumer spending (http://www.marketwatch.com/story/consumer-spending-rises-scant-01-in-october-2015-11-25) rose slowly in October for the second straight month, as Americans boosted savings and spent less on new cars and trucks. Meanwhile, U.S. orders for long-lasting or durable goods (http://www.marketwatch.com/story/durable-goods-orders-climb-3-in-october-2015-11-25)rebounded in October to show the first increase in three months.

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(END) Dow Jones Newswires

November 25, 2015 09:26 ET (14:26 GMT)