The euro has dropped sharply against other currencies after the head of the European Central Bank, Mario Draghi, said the bank could introduce more stimulus measures.
Speaking in Portugal, Mr Draghi said that if eurozone inflation did not return to its target of close to, but below, 2%, the bank could review its options in the "coming weeks".
"In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required," he said.
The stimulus measures could include more asset purchases by the bank or even a cut in interest rates.
"Will use all the flexibility within our mandate to fulfill our mandate – and we will do so again to answer any challenges to price stability in the future," Mr Draghi said.
Against the dollar, the euro reversed earlier gains to stand at $1.1192, down 0.2% for the day.