The euro has crumbled below a new benchmark, dropping $1.08 for the first time in 11 years.

The European single currency tumbled to as low as $1.0723 in London afternoon trading on Tuesday.

The parity rate was the lowest level since mid-April 2003.

“The US dollar scored multi-year highs … amid starkly diverging outlooks for interest rates globally,” AFP quoted Daniel Sugarman, analyst at trading firm ETX Capital, as saying.

The euro is sinking at a time the European Central Bank (ECB) has launched its 1.1 trillion euro ($1.2 trillion) quantitative easing (QE) stimulus “bazooka”.

“Renewed upward momentum for the US dollar in the near term has been reinforced by the stronger than expected US employment report for February which has supported investor expectations that the Fed remains on course to begin raising rates from the middle of this year,” Derek Halpenny, economist at Bank of Tokyo-Mitsubishi UFJ, said.

Oxford Economics and Goldman Sachs had already forecast that the shared eurozone unit would sink to parity against the greenback by the end of 2016, but that could happen much sooner.

Deutsche Bank forecast the euro would keep falling further, to $0.90 by 2016 and $0.85 by 2017.

Elsa Lignos, senior currency strategist at RBC Capital Markets, said, “The euro-dollar pair has been carried lower mainly by dollar strength than euro weakness.”