The value of the euro has fallen to its lowest level since the middle of 2010, following comments from Mario Draghi, the president of the European Central Bank (ECB).
In a newspaper interview, he hinted again that the bank might soon start a policy of quantitative easing to try to stimulate the eurozone economies.
The aim would be to stop the continued fall in the general level of prices.
The euro fell 0.4% to $1.2034 after Mr Draghi’s comments were made public.
Recently, the official eurozone inflation rate has fallen to just 0.3%.
To stop deflation – falling prices – gaining a grip on the world’s largest trading bloc, the ECB could launch its own programme of quantitative easing (QE) by buying government bonds, thus copying its counterparts in the UK and the US.
The purpose would be to inject cash into the banking system, stimulate the economy and push prices higher.
Speaking in an interview with the German newspaper Handelsblatt, Mr Draghi said: “We are making technical preparations to alter the size, pace and composition of our measures in early 2015.”