The euro fell to a 12-year low against the U.S. dollar Wednesday, as analysts said hello is likely the era of Europe’s currency commanding a premium over the greenback has ended.
The euro has remained at levels over the U.S. dollar since 2002, but weak economic growth, a brand new quantitative easing program from the European Central Bank and a surging U.S dollar have all conspired to weaken the euro in the past year. The currency, utilized by the 19-member eurozone monetary union, has tumbled 35% in the past 12 months.
The euro fell a further 1% on Wednesday, to US$1.0587, its weakest level since 2003.
\”For now the euro looks to become headed towards parity,\” said Michael Hewson, chief market analyst at CMC Markets UK.
The euro\’s steadily decline this year is in stark contrast to the lofty highs prior to the financial crisis, once the currency topped out at US$1.60.