The drop in the single currency happened after Germany moved to clamp down on speculators.
The euro fell below €1.22 for the first time since April 2006. This morning it was trading at €1.2196, however this afternoon it rallied to $1.2365.
Meanwhile, the European Commission says it fully understands why Germany banned some short-selling of bonds, stocks and transactions in credit default swaps, but it would be more effective if co-ordinated across the European Union.
'We fully understand why the Germans have made their decision,' Commission spokesman for internal markets Chantal Hughes told a news briefing.
'We believe the action would be all the more effective if co-ordinated at the European level,' she said.
Asked if the euro was under speculative attack, she said: 'The Commission understands why, in certain cases, when there is a downward spiral, it can make sense indeed to temporarily suspend naked short-selling.
'It's been done in the past, so we do understand the reasons behind the German decision,' she said.
What is naked short-selling?
Short-sellers borrow shares, sell them and then buy them back when the stock falls and return them to the lender, keeping the difference in price.
'Naked' short-selling is when sellers do not even borrow or own the shares that they are offering for sale, this pushes the price down.
Short-selling on Irish listed banks has been banned here since September 2008.
The ban on short-selling does not apply to other equities, Government debt or Credit Default Swaps.
