The euro extended losses this morning to hit a nine-year low against the dollar, as investors ramped up bets the European Central Bank was getting closer to adopting a large scale quantitative easing programme to ward off deflation.
A slump in German industrial orders in November reinforced bearish views of the single currency.
The euro fell under $1.18 to hit a low of $1.17915 at one stage today. This was the single currency's lowest level since late December 2005.
Data yesterday showed consumer prices in the euro zone fell in December from a year earlier, marking the first annual decline since 2009.
That cemented expectations the ECB will probably announce a bond buying programme at its policy meeting on January 22
