ISO-8859-1 (Latin 1) did not include the euro, but does include other common unicode characters. It was added in the replacement ISO-8859-15 (Latin 9). Most likely the mail is using the old encoding; lots of software does. Check the headers for the character encoding. Here's one in my inbox:
Code:
Content-Type: text/plain; charset=windows-1252; format=flowed
Content-Transfer-Encoding: 7bit
Note character set encoding is windows-1252, which is Latin-1 with the addition of the euro and a few other characters.