Dollar Rises as ECB Hikes Interest Rates Amid Ongoing Inflation Concerns

The dollar rose against major currencies on Thursday, recouping some of its losses from earlier in the week. The euro slipped after the European Central Bank (ECB) delivered a widely expected interest rate increase.

According to Eugene Epstein, head of structured products for North America at Moneycorp, 'the main driver of the stronger dollar is the PPI' - U.S. producer prices that matched market forecasts and reinforced expectations of a Federal Reserve rate hike next week.

The euro dropped immediately after the ECB decision and was last down 0.19% against the dollar at $1.1612, as markets worried about the economic impact of future hikes with ECB policymakers aiming to tame inflation.