Euro weakens on interest rate hike

The euro was weaker on Wednesday on a new hike in interest rates, to 4 percent, from the European Central Bank. The shared currency was 0.1 percent lower to £0.6775 in relation to sterling, while it dropped 0.2 percent to $1.3500 versus the US dollar and fell 0.4 percent to ¥163.44.

In Australia, the Reserve Bank there held interest rates at 6.25 percent, although many analysts believe that there could be a rate hike soon. In midday trade in New York, the Aussie had added 0.4 percent to ¥102.02 versus the yen, while it was 0.7 percent higher to $0.8425 against the US dollar. The New Zealand dollar also strenthened against the greenback, adding 0.2 percent to $0.7510. It was the kiwi’s highest level versus the greenback since March 1985.

The US dollar, meanwhile, weakened against the yen, dropping 0.3 percent to ¥121.05.

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