The dollar has fallen to its lowest level against the euro since October.

The US currency experienced its sharpest three-week slide in more than four years following indications by the central bank in the US – the Federal Reserve – that US interest rates would likely rise by just two separate 0.25% increases this year, rather than the earlier projection of four.

Janet Yellen, Chair of the Fed, suggested that a move could come as early as at their next meeting in April.

She said:

"The committee continues to feel that we are on a course where the economy is improving and inflation is moving back up, and... if events continue to unfold in that way, we are likely to gradually raise rates over time...

"We'll watch how the economy behaves. We are prepared to respond if things transpire differently".

The euro is currently trading at 1.13 against the dollar, which will not please a European Central Bank hoping that the euro would weaken on the back of last week's expanded quantitative easing programme.

A weaker euro would help stimulate Eurozone exports.