ECB holds interest rates steady

Story link: ECB holds interest rates steady

The US dollar weakened on Thursday, falling 0.4 percent to ¥118.90 in relation to the Japanese yen and dropping 0.5 percent versus the euro, to $1.3490.

The euro was stronger as the European Central Bank left interest rates steady at 3.75 percent for the time being, but ECB president Jean-Claude Trichet left little doubt in his comments accompanying the announcement that rates are likely to rise in June in an effort to fight inflation. The firmness of Mr. Trichet’s remarks led most analysts to believe that more rate hikes will more than likely follow a June increase.

Even before the ECB rate decision, the euro hit a new record high versus the Swiss franc when it rose to SFr1.6452 against the Swiss currency, a gain of 0.1 percent.