Euro weaker after ECB rate decision

Story link: Euro weaker after ECB rate decision

The euro weakened in relation to the US dollar, the yen and the Canadian dollar Thursday as the European Central Bank left Eurozone interest rates steady at 4.25 percent for the time being.

Along with the rate decision, ECB President Jean-Claude Trichet made comments indicating that economic growth in the region will likely slow in the second half of the year, reducing sentiment that the Bank will issue a rate hike anytime soon.

In late morning trade in New York, the euro traded at $1.5377, while it took ¥168.4242 to buy a euro and the shared currency was worth C$1.6157.

Meanwhile, the pound dropped versus the euro as the Bank of England held UK interest rates steady at 5 percent, as expected.

The UK currency was already down before the rate decisions was issued as mortgage lender HBOS (LSE: HBOS) reported that UK house prices were down again in July.

At just past 11 a.m. in New York, the pound traded at 79.06p to the euro while it took $1.9451 to buy a pound.

The Canadian dollar strengthened in relation to its US counterpart as oil prices climbed and the greenback weakened in relation to other currencies, with the loonie trading at C$1.0507 to the dollar.