A picture illustration shows U.S. Dollar and Euro banknotes on a pair of scales in Vienna March 11, 2015. REUTERS/Heinz-Peter Bader
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The euro is notching one milestone after another as it drops against major currencies.On Wednesday, the euro fell to its lowest level against the dollar since April 2003, at $1.0557 .Euro EXCESSThe principal reason is the European Central Bank has not only cut interest rates but also started creating more euros to put into the financial system.The hope is that the 18-month 1.1 trillion-euro ($1.12 trillion) monetary stimulus will shore up the economic recovery and get inflation back into the system.That's because while the ECB's policies have been weakening the euro, the U.S. Federal Reserve's are bolstering the dollar.At the very least, the economic outlook for the eurozone isn't rosy, and that's likely to require lower interest rates from the ECB than the Fed, for example, and that prospect has been another reason hurting the euro currency.
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