Dollar Gains Ground as Euro Falls After ECB Rate Hike

The euro fell against major currencies on Thursday after the European Central Bank (ECB) raised interest rates by 25 basis points.

This move was expected, and the ECB's decision marked its second hike this year to combat rising energy-driven inflation triggered by the Iran war.

The dollar rose across various currency pairs, with the euro down 0.03% against it at $1.163, while the Swiss franc saw a strengthening of 0.14% in favor of the dollar.

Eugene Epstein, head of structured products North America at Moneycorp, attributed the dollar's gains to U.S. producer prices data coming in line with market expectations, which boosted chances of a Federal Reserve rate hike next week.