Euro falls to lowest level against US dollar in over five years

The euro continued to plummet against the US dollar on Thursday, falling to a five-year low amid the ongoing Russia-Ukraine war and the Federal Reserve's monetary tightening.

Euro/dollar parity fell earlier to as low as 1.0483, its lowest level since Jan. 11, 2017, according to official figures.

A major factor behind the historical decline is Russia's war on Ukraine, which increases geopolitical risks for Europe along with the additional inflationary pressure it poses to the EU economy.

In the face of global record-high inflation, the European Central Bank has not yet raised interest rates. However, the Fed began monetary tightening in March and this year is expected to make several rate hikes, which would tend to raise the greenback's value against other currencies.

Since Russia’s war on Ukraine, which began on Feb. 24, euro/dollar parity has fallen 7.2%, according to official figures.