(fxcue news) - The euro fell against its major counterparts in the European session on Thursday, as the European Central Bank cut key interest rates by 25 basis points amid progress in disinflation and weak economic data released since the September policy session. The Governing Council, led by ECB President Christine Lagarde, lowered the deposit facility rate by a quarter basis point to 3.25 percent following the rate-setting session held in Ljubljana, the capital of Slovenia. "…the decision to lower the deposit facility rate - the rate through which the Governing Council steers the monetary policy stance - is based on its updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission," the ECB said. The ECB left the forward guidance on interest rates unchanged this time. Policy rates will be kept sufficiently restrictive for as long as necessary to bring euro area inflation back to the 2 percent target, the ECB said. "The Governing Council will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction," the bank said. The ECB chief clearly refused to pre-commit an easing in December, instead stressed on the data-dependency approach. Answering a question, she said the ECB has not yet completely "broken the neck of inflation". The bank is still looking at a soft landing, Lagarde said. The euro dropped to a 2-1/2-month low of 1.0810 against the greenback and a 1-week low of 0.9353 against the franc, from yesterday's close of 1.0861 and 0.9400, respectively. The currency is seen finding support around 1.06 against the greenback and 0.925 against the franc. The euro declined to near a 2-week low of 161.84 against the yen and more than a 2-week low of 0.8319 against the pound, from yesterday's closing values of 162.54 and 0.8362, respectively. The currency may challenge support around 158.00 against the yen and 0.82 against the pound. The euro weakened to 10-day lows of 1.6149 against the aussie, 1.7833 against the kiwi and 1.4901 against the loonie, from Wednesday's close of 1.6293, 1.7935 and 1.4935, respectively. The currency is likely to locate support around 1.59 against the aussie, 1.74 against the kiwi and 1.46 against the loonie.