The euro is seen clocking up its biggest quarterly decline at the end of March since its launch in 1999—and could fall even further over the coming months.
The currency, which is used by the 19 countries in the euro zone, continued to decline on Tuesday, reaching $1.0718. It has fallen over 11 percent against the U.S. dollar since the start of the year, putting it on track for its steepest-ever quarterly decline.
The currency’s losses have been driven by the launch of the European Central (ECB)’s 1 trillion euro ($1.1 trillion) quantitative easing program in March. Asset purchases by the ECB increase the supply of euros in the monetary system, pushing the currency’s price lower.