ECB Governing Council member and Bundesbank chief Jens Weidmann said negative interest rates were an option to temper euro strength and buying loans and other assets from banks to support the bloc was not out of the question.
Peripheral European government bond yields hit a multi-year trough on Friday while the premium that U.S. two-year debt pays over German paper widened.
An overwhelming majority of economists polled by Reuters expect no imminent rate move at the April 3 meeting. Only two of 72 economists predicted a rate cut, versus 26 of 78 who did before last month's meeting.
Kiwi on fire
Well ahead of every other developed country in normalising policy is New Zealand, which this month lifted interest rates from a record low and flagged more tightening.
Unsurprisingly, the New Zealand dollar has been among the strongest performers in recent months. It rose as far as $0.8697 a high not seen since August 2011. Against the yen, the kiwi hit a six-year high of 88.86.
The U.S. dollar traded little changed at 102.15 yen. The yen showed limited reaction to data that showed Japan's core consumer prices rising 1.3 percent in February from a year earlier, posting a ninth straight month of gains and hinting that the economy is making some progress to overcome 15 years of deflation.
Japan's CPI is expected to gather more attention after the country raises its consumption tax in April, which may cool consumer spending and raise speculation of further monetary easing by the Bank of Japan.
"Into the March 31, year-end dollar/yen may be pressured below 102, but thereafter concerns about the negative impact from April's sales tax hike might weigh on the yen," said Tom Levinson, currency strategist at ING.