While Draghi said he does not expect further easing, he did say interest rates will remain low for a long time.
"We're seeing this rush to cover shorts because of that one statement from Draghi that he does not anticipate further rate cuts," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
"But when the dust settles, I think the euro is still going to go lower, based on the fact that the ECB exceeded market expectations with its suite of policy tools, and also market positioning heading into today's meeting was far less bearish for the euro than we saw in previous meetings."
The euro recovered from six-week lows against the dollar of $1.0823 to trade at a three-week high as money market rates in the euro zone rose to price out further deposit rate cuts. The euro was last at $1.1199, up 2 percent.
According to Bespoke, the euro is up more than 3 percent from its lows against the dollar. The firm also said that, in the history of the currency, there hasn't been a single day where the euro was down 1 percent intraday and rallied back more than 3 percent off that level.
Against the yen, the euro hit a three-week high and was last at 126.61, up 1.8 percent.