Downing of Malaysian plane and ensuing geopolitical tensions see euro come off boil

MarketsAssociated Press

The euro has fallen to its lowest level against the dollar this year amid heightened tensions surrounding developments in Ukraine following the downing of Malaysia Airlines Flight 17.

The crash of the jetliner, which cost the lives of all 298 on board, has fueled speculation that the European Union will impose further sanctions on Russia.

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Western powers have said there is evidence that the jet was hit with a missile fired from territory controlled by pro-Russia insurgents. Moscow has suggested the missile was fired by Ukrainian government forces.

The deterioration in relations between the two sides has worked against the euro, which is used by 18 EU countries. The single currency fell a further 0.4 percent Tuesday to $1.3464, its lowest level since last November.