Talk that the euro could weaken below $1 over the next 12 months is growing in currency circles a day after the European Central Bank (ECB) unleashed monetary stimulus to kick-start a weak economy.
The euro hit an 11-year low on Friday, falling below $1.12 for the first time since September 2003. It follows the ECB's decision to pump 60 billion euros ($68 billion) a month into the euro zone economy, and amid jitters ahead of Greece's general election this weekend.
"It's not our central view that we will get to parity or below, but I am aware that this view is out there and that the pace of the euro's decline has accelerated over the past month," said Jane Foley, a senior currency strategist at Rabobank in London. "And yes, the risk of further weakness appears to have increased."