The largest ETF pegged to the euro fell to the lowest level in over two years Thursday as the currency dropped below the key $1.22 mark.

CurrencyShares Euro Trust (NYSEArca: FXE) is down nearly 8% the past three months on the intensifying Eurozone debt crisis.

The euro fell under $1.22 for the first time in two years. FXE has trended to the downside in the wake of the recent European Central Bank rate cut. [Euro ETF Tests 52-Week Low After ECB Slashes Rates]

Meanwhile, the dollar has strengthened on the safe-haven trade in currency markets and speculation the Federal Reserve won’t engage in additional quantitative easing following the release of the latest Fed minutes.

“Every single central bank except for the Fed is easing, and until that happens we expect the dollar to stay supported,” said George Saravelos, currency strategist at Deutsche Bank, in a Reuters report. “The euro is likely to weaken further as it will be hurt by the ECB’s decision to cut the deposit rate and there will be a shift in funding.”

PowerShares DB US Dollar Index Bullish (NYSEArca: UUP) rose to a fresh 52-week high on Thursday to over $23 a share.

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