The euro sank against both the pound and the US dollar over policymakers’ concerns its efforts to kickstart the economy could be blown off course.
The ECB has been pumping billions of euros into the eurozone every month in the hope of raising inflation and growth.
But expectations the money-printing programme could soon be scaled back have strengthened the euro and it recently hit a two and a half year highs against the US dollar.
The stronger euro is set to push inflation down, and has also showed signs of dampening exports from the bloc, which could damage growth in countries such as Germany.
Policymakers worries over the euro and the eurozone economy have been revaled in minutes from the ECB’s latest meeting.
It’s though the stronger euro could now delay the ECB from scaling back its support programme for the economy.
And this has led to a market sell-off of the euro.
Simon Derrick, chief market analyst with Bank of New York Mellon in London, said: “The reality is the ECB is definitely more concerned [about euro strength] than the market gave it credit for.
“I think it is entirely possible you could see further downward pressure on the euro from here.”
The ECB aims to keep inflation running at two per cent.
But eurozone data out today showed prices rises were at just 1.3 per cent in July.
The stronger euro could push the measure down even further in the coming months.