ECB raises Eurozone interest rates

The euro declined in value Thursday after the European Central Bank raised Eurozone interest rates to 4.25 percent but comments from ECB president Jean-Claude Trichet led analysts to believe that it could be the last rate hike in the region for some time.

In addition, the ECB said that economic growth could slow again next year.

At 12:30 p.m. in New York, it took $1.5691 to buy an euro, while a euro was worth ¥167.4910 and it took 79.25p to buy a euro.

The pound weakened in relation to the US dollar on new data showing that the UK service sector contracted in June.

In early afternoon trade in New York, it took $1.9824 to buy a pound.

The Canadian dollar declined versus the US dollar on the news from the US Labor Department that the US unemployment rate was unchanged in June at 5.5 percent.

At just past noon in New York, the Canadian dollar traded at C$1.0216 to the greenback.

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