The resilient euro may have bounced back from this month's interest rate cut from the European Central Bank (ECB), but recovering from talk that the ECB is mulling negative deposit rates could be much harder, analysts say.
A report on Wednesday from Bloomberg News cited two unnamed sources as saying the central bank was considering lowering the deposit rate for cash it holds overnight for banks to below zero.
(Read more: The euro could disappear in 10 years: BlackRock CEO)
That knocked the euro down about 0.7 percent against the dollar, its steepest loss so far this month. And the single currency was still nursing its losses on Thursday as it hovered at $1.3426 in Asia trade.
"The euro really took a dip on reports that the ECB was considering negative rates for commercial lenders," John Doyle, director of markets at Tempus, told CNBC Asia's "Squawk Box."
"This is something we don't think the ECB realistically has on the table at the moment, but in this headline-driven market that we're in these days, the headline was enough to trigger a 0.7 percent fall in the euro," he added.
A cut in deposit rates would probably put off banks from parking their cash with the ECB, but could encourage them to lend instead, analysts said.
The ECB cut its main interest rate by 25 basis points to 0.25 percent earlier this month and while the surprise decision initially knocked the euro, the currency recovered from that blow pretty quickly.
(Read more: ECB was 'very pragmatic' to cut rates: UBS CEO)