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The single currency dived another 0.4 per cent to $1.036 - a level not seen since 2003 - and experts say it could fall further still in the coming days and weeks.



Sterling also help firm against the euro, staying above the 1.19 mark.



Since September the euro has lost more than seven per cent against the dollar, and more than two per cent against the pound.



In comparison to Britain and America, the eurozone's economic recovery is struggling to gather pace.

GETTY Euro has fallen to its lowest level against the dollar since 2003

Bloomberg The euro has slumped against the dollar exchange over the last year

And the bloc now faces a toxic cocktail of risks, raising fears about the future of the euro.



Worries have been fuelled by last night's terror attack in Berlin, experts warned.



At the same time, Italy's banks are in crisis, Greece's debt deal faltering, and French and German elections are looming.



In another desperate bid to boost the economy, the European Central Bank (ECB) revealed earlier this month it would extend its money-printing programme to the end of 2017, after already slashing rates below zero.



In contrast, the Federal Reserve raised US interest rates last week, and pointed towards raising rates as many as three more times in 2017 amid a strengthening economy.



Michael Hewson, chief market analyst at CMC Markets UK, said: "The tragic events in Turkey, Berlin and Switzerland don't appear to have had any significant effect on financial markets for now but they could well influence the political calculus in Europe next year given the elections in the Netherlands, France and Germany, as concerns about terrorism influence the way people vote with respect to the status quo."