The euro's decline has been driven primarily by anticipation for, and then the start of, a €1.1 trillion quantitative easing programme by the European Central Bank (ECB) on January 22. This followed a raft of disappointing economic data, suggesting the Eurozone could be in danger of falling into a deflationary spiral. It's hope that the programme will push up consumer prices, and kick-start growth in the ailing region.
The other half of that story is a strengthening dollar. It's been pushing upwards for about four years now, having risen 13 per cent in 2014, and up another [XX] per cent so far in 2015. Aside from events overseas, this is down to a stellar performance from the US economy, which has smashed expectations so far in 2014.
"The euro shed nearly 12 percent against the dollar in 2014"
2 January: The euro kicked off the new year with a thud, falling to its lowest level in four and a half years, hitting $1.2035, or its lowest level since June 2010.
ECB President Mario Draghi told German financial newspaper Handelsblatt that the central bank was making "technical" preparations for a change in its asset purchase program – which markets took as a heavy hint that the central bank had quantitative easing up its sleeve.
"[The ECB] is making technical preparations to alter the size, pace and composition of our measures in early 2015, should it become necessary to further address risks of a too prolonged period of low inflation."
Meanwhile, the single currency was also hurt by disappointing euro zone manufacturing data.
Fell as low as 1.2001, and closed at 1.2001
5 January: The single currency dived below $1.20, or its lowest since early 2006, amid expectations that the European Central Bank was gearing up to unveil a large-scale bond-buying programme on January 22, and concerns over the political situation in Greek ahead of its general election due a couple of days later.
Fell as low as 1.1864, and closed at 1.1933
8 January: The euro fell to $1.17625, its lowest since December 2005, after a slump in German industrial orders for November, and a drop in Eurozone inflation expectations stoked concerns over the economy.
Meanwhile, political uncertainty in Greece continued to weigh, with investors preempting that the election on January 25 would lead to a stand-off between Berlin and Athens over the latter's austerity programme.
Data released a day earlier showed consumer prices in the euro zone fell in December from a year earlier, marking the first annual decline since 2009.
Fell as low as 1.754, closed at 1.1793
13 January: The euro hit a nine-year low against the dollar, after the single currency fell as low as $1.1752, taking it to its lowest since December 2005.
ECB Governing Council member Ewald Nowotny told a panel discussion organised by news outlet nzz.at that the ECB should decide sooner rather than later whether to start large-scale government bond-buying programme.
"I don't think that … one should get into monthly data but I think we certainly have prospects for very low inflation rates in the medium term," he said in response to a question on how acute the danger of deflation was.
"Second, you always have to consider that monetary policy has an impact only after a long delay … that means if I want to do something I should do it sooner rather than later."
Fell as low as 1.175, closed at 1.1773
15 January: The single currency slid to an 11-year low against the greenback, after it fell as low as $1.15675, which was a level not seen since November 2003. It later closed at 1.1633.
The Swiss central bank had rocked global markets with a shock decision to abandon its euro exchange rate cap, which had been in place since September 2011.
Fell as low as 1.1568, closed at 1.1633
22 January: The euro sank to its lowest level in over 11 years against the dollar, after falling 1.5 per cent to $1.1198,
taking it to its weakest since September 2003.
It came after ECB President Mario Draghi unveiled a bond-buying programme that will see the central bank pump hundreds of billions into the Eurozone, in order to ward off deflationary spiral and kickstart economic growth.
Fell as low as 1.1316, closed at 1.1366
23 January: The single currency fell to a new 11-year low against the dollar, amid growing concern anti-austerity party Syriza would swoop to power in Greece's elections scheduled for two days' time. This was compounded by the ECB's announcement a day earlier, that it was going to begin buying up Eurozone government bonds.
The euro lost over 2 per cent against the dollar, falling below $1.12 to $1.1115 for the first time since September 2003.
Fell as low as 1.1115, closed at 1.1204
5 March: The single currency fell to an 11-and-a-half year low against the dollar, skidding to just $1.1026, which was its lowest since September 2003.
Fell as low as 1.0988, closed at 1.103
6 March: The euro broke below $1.1000 for the first time since September 2003, but it later drifted back to $1.1030.
"It came under pressure after the ECB announced it would start its 1 trillion bond buying programme next week. Governor Mario Draghi suprised markets by saying the central bank would be prepared to buy bonds with negative yields of up to 20 basis points, triggering a big rally in euro zone bonds."
Fell as low as 1.084, closed at 1.0844
10 March: The euro hovered near a 12-year low against the dollar, having fallen 0.4 per cent to $1.0808, which is its lowest since September 2003.
This came after a renewed rally in the greenback suggested that the currency pair would reach parity – when one euro equals one dollar – a lot sooner than most of the major banks had expected.
The uptick started in February, after Janet Yellen said the Federal Reserve was flexible regarding a rate hike. She cited sluggish wage, as well as developments aboard,
Fell as low as 1.0693, closed at 1.0698