17.08.201721:43:00UTC+00ECB Minutes Show Policymakers’ Worry of Euro Overshoot

European Central Bank officials expressed their concern over a threat of an even stronger European currency, as the euro's gains to the highest level since the launch of the QE in 2015 could hurt efforts to step up inflation.

The record of the July 19-20 policy meeting released by ECB showed that officials were worried regarding the risk of the exchange rate overshooting in the future.

After the report, the single currency slid by over a quarter of a cent, before rising once more to trade at $1.1737, ending the day 0.3 percent down. It has gained 11 percent versus the dollar this year and 4 percent on a trade-weighted basis as economic recovery in the region spreads. This month, the currency hit its highest level versus the dollar since January 2015.

A too-strong euro would hinder efforts to bolster price stability in the eurozone, underlining the problem policy makers face as they get ready to talk about a gradual unwinding of their ultra-loose monetary stimulus. While economic growth in the 19-nation region is proving to be solid and spreading in the zone, inflation continues to be significantly short of the ECB's goal.