The euro was down 0.17 percent to $1.1256, after having fallen to a low of $1.1205, its lowest since Friday.
Bloomberg, citing unnamed euro zone officials, said the central bank's staff forecasts for inflation for the next three years had been cut to 1.5 percent, from 1.7 percent, 1.6 percent and 1.7 percent, respectively in March.
Those have still to be approved by the two-day meeting of the Governing Council, the report said, but, if true, would be a signal of a softer line than many in currency and bond markets have been expecting. The ECB declined to comment on the report.
"That would suggest that it would be very difficult for the rate hawks on the governing council to force through an early departure from the very accommodative policy that the ECB is pursuing right now," said Shaun Osborne, chief FX strategist at Scotiabank in Toronto, said.