Sterling, euro weaker on rate decisions

The euro weakened against the US dollar on Thursday after the European Central Bank held interest rates at 4 percent and Bank president Jean-Claude Trichet declined to phrase his comments using words that usually signal a rate increase coming at the next meeting of the Bank.

Most analysts are now convinced that if the ECB hikes rates again this year, it won’t happen until September at the earliest.

While the euro remained ahead of the yen and sterling, up 0.2 percent to ¥167.10 and 0.2 percent to £0.6760 respectively in midday trade in New York, it had dropped 0.1 percent to $1.3595 in relation to the greenback.

Sterling also declined versus the US currency, falling by 0.3 percent even though the Bank of England hiked interest rates in the UK to 5.75 percent.

The dollar added 0.1 percent to SFr1.2185 in relation to the Swiss franc and gained 0.2 percent to ¥122.92 against the yen.

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