The shared currency of the European Union lost value Thursday following the European Central Bank deciding to leave interest rates unchanged, according to Reuters.
Policy makers decided to keep the interest rate at 1.5 percent during the final interest rate meeting under the leadership of President Jean-Claude Trichet, according to Bloomberg. The euro fell to its lowest price of the session when compared to the U.S. dollar on Thursday.
"In terms of [foreign exchange] reactions, we think it will be atypical," states a note from RBC Capital Markets. "If rates stay on hold and the ECB signals no prospects for easing, what would usually be good for the currency is more likely to be taken as euro-negative. Equally aggressive easing (more liquidity or indications of pending cuts) would be positive for risk and at the margin may prop the euro against the dollar."
September saw inflation increase to 3 percent following the metric's registering at 2.5 percent in August, Bloomberg reports. Jeremy Stretch, foreign-exchange strategy executive director with Canadian Imperial Bank of Commerce in London, told Bloomberg that inflation's increase is one challenge the ECB has to face.
An auction for Spanish bonds generated strong results that will help early advances with the euro zone's peripheral bond markets, according to Dow Jones Newswires.
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