The euro is ripping higher after a big drop that followed the European Central Bank's announcement that it was cutting interest rates.

The euro had fallen about 1.5% to as low as 1.0823 against the dollar.

But the euro reversed its losses as Mario Draghi, the ECB president, said in a news conference that further rate cuts may not be necessary.

Investing.com, Business Insider

Before Thursday, Draghi said the bank would do whatever it took to bring inflation to its 2% target. Markets had therefore expected the rate cuts, and they took comfort in the fact that the central bank was working to mend the economy. European shares rallied alongside US stock futures.

"In one line: Mr. Draghi fires the bazooka," Pantheon Macroeconomics' Claus Vistesen wrote in a note after the rate-cut announcement.