At the beginning of last year, the European Central Bank reduced its U.S. dollar holdings and lowered the share of the dollar in its foreign reserves, describing the move as a routine portfolio rebalancing.

According to financial statements published on Thursday, the ECB generated a profit of 909 million euros in the first quarter and reinvested the entire amount into assets denominated in Japanese yen.

Amid unpredictable U.S. economic policy and the sharp depreciation of the dollar last year, speculation emerged that some major holders of U.S. assets were cutting their exposure.

In the near term, the EUR/USD pair remains under pressure, although the 1.1750–1.1800 area may serve as a support zone.