By Jonathan Davies

The euro has fallen to a 12-year low against the US dollar, days after the European Central Bank (ECB) launched its quantitative easing (QE) programmme.

The euro fell as low as $1.0560 on Wednesday before recovering slightly. The euro has fallen more than 22% since July 2014 when it was worth $1.37.

However, many market experts and traders expect the euro to be worth the same as the dollar soon.

The fall comes after the ECB launched its QE programme on Monday which will see its buy €1.1 trillion worth of government bonds over the next 18 months.

Yesterday (Tuesday), the sterling rose to a seven-year high against the euro.