The euro tumbled to a nine-year low on Monday as investors predicted monetary easing from the central bank and reacted to a disputed report saying Germany was preparing to allow Greece to quit the currency and exit the eurozone.

The common currency had already fallen 0.8 per cent to a four-and-a-half-year low on Friday after European Central Bank chief Mario Draghi warned that the risk of the central bank failing to fulfil its mandate of price stability was “higher than it was six months ago.” Investors took the comments as a strong hint that the ECB could unveil new easing measures at its January 22 meeting.

The currency’s downward trajectory intensified after a Der Spiegel article at the weekend, citing unnamed sources, claimed that Berlin was ready for Greece to exit the eurozone if the populist Syriza party wins this month’s snap election and reneges on the country’s reform programme. Angela Merkel’s government has disputed the report, insisting that it still assumes “that Greece will continue to meet its obligations.”