The euro on Thursday declined 0.9% against the US dollar, reaching mid-1.02, its lowest level since November 21, 2022, Euronews reports.

The common currency extended weakness against its counterpart at the start of the new year due to concerns about the Eurozone’s economic outlook, political instability, and a monetary policy discrepancy between the European Central Bank (ECB) and the Federal Reserve (Fed).

The EUR/USD pair has fallen sharply from the 2024 peak of above 1.12 in September, marking a 9% decline over three months.

The US dollar’s strength, bolstered by Donald Trump’s presidential victory, has exacerbated the euro’s weakness since November.

Analysts expect the euro-dollar pair to reach parity in 2025, a level last seen in 2022 when Russia launched a full-scale military operation in Ukraine.