On Thursday, the European Central Bank President Christine Lagarde remarked that the euro plunged to a 2-year-low against the US dollar. The ECB, upon this realization, is in no rush to raise interest rates as opposed to the US Federal Reserve's aggressive monetary policies.

Read more: US Federal Reserve hikes interest rate

The euro fell against the dollar to $1.0758, the lowest value reached since April 2020. 

Lagarde revealed that there is no clear timeframe for when rates would start rising, saying that it could be weeks or even many months after the ECB's scheme ends.

"We'll deal with interest rates when we get there," she added.

On Thursday, the ECB laid down plans to cut bond purchases - mostly known as quantitative easing - in the current quarter, and stop them during the third quarter.

The euro, furthermore, against the British sterling, also slipped to a one-month low. It was last down 0.35% at 82.74 pence.

Lagarde's comments were in stark contrast to those of Fed Chair Jerome Powell, said Joseph Trevisani, a senior analyst at FXStreet.com.

“They could have taken a book from what Jerome Powell has done, and that is to be aggressive rhetorically. Ms. Lagarde did not seem disposed to do that. She was more concerned apparently, and maybe understandably, about the Ukraine war and its impact on Europe," he said.

Ima Sammani, FX market analyst at Monex Europe, also said "Frankly, given how uncertain conditions are at the moment, Lagarde's caution can be justified, but it is fair to say that markets were expecting a bit more sprinkle after the eventful March meeting." 

The yen, however, has made a small recovery against the dollar, after reports of it hitting its lowest in two decades.