The euro weakened to its lowest level since August last year against the backdrop of the broader appreciation of the US dollar and oil and the escalation of the conflict in the Middle East.

The common European currency fell 0.6 percent against the dollar to $1.1435, the lowest level in more than seven months, Bloomberg estimates.

Yesterday, the European Central Bank announced a reference exchange rate of the euro of $1.1547 against 1.1581 on Wednesday.

Since the beginning of the year, the euro has lost more than 2 percent of its value, as rising energy prices are intensifying concerns about Europe's economic prospects.

The decline deepened after the US dollar appreciated today against all major currencies of the G-10 group against the background of the ongoing military strikes in the Middle East.

Against the British pound, the single European currency depreciated minimally by 0.03 percent to 0.8625 euros per pound, and against the Swiss franc, the depreciation is by 0.33 percent to 0.9028 euros per franc.

The euro was already under pressure, as oil prices, which are holding above $100 a barrel, again highlighted the structural vulnerability of the European economy. With rising energy prices, Europe's trade balance is deteriorating, as the region remains heavily dependent on imported energy resources, which puts additional pressure on the currency.