European Central Bank policymakers worried about a possible overshoot in the euro when they met on July 20, warning that easy financing conditions "could not be taken for granted" and depended on the ECB's easy policy, minutes of the meeting showed on Thursday.
A recent bounce in the euro, which is making the bloc's exports less attractive and imports cheaper, has been singled out by investors as the biggest threat to the ECB's efforts to revive inflation in the euro zone.
Minutes of the ECB's latest policy meeting showed rate-setters were highly aware of this risk as they decided against any change to their pledge for continued monetary stimulus.
"Concerns were expressed about a possible overshooting in the repricing by financial markets, notably the foreign exchange markets, in the future," the ECB said in the accounts.
"It was underlined that the still favourable financing conditions could not be taken for granted."
The policymakers also said the duration and pace of the ECB's 2.3 trillion euros bond-buying programme were not the only available levers to adjust their stance and "more policy space" was needed "in either direction".
The minutes showed a suggestion was made to adjust the ECB's guidance, which includes a pledge to increase bond purchases from their current 60-billion-euros monthly pace if needed, but it was dismissed out of fear of a market backlash.