EUR/USD Surges to Two-Week High Amid ECB Rate Hike and Inflation Pressures

The EUR/USD pair rose to a two-week high after the European Central Bank (ECB) raised its key interest rates by 0.25% on Thursday, bringing the deposit rate to 2.5%. ECB President Christine Lagarde described the decision as 'a no-brainer', suggesting further rate increases may be in store for the coming months.

Lagarde noted that ongoing conflict in the Middle East is generating inflation pressures, and inflation is expected to remain above target for an extended period.

The EUR/USD pair moved up 0.33% on the day, currently quoting at 1.1653. On the National Stock Exchange (NSE), EUR/INR futures also edged up, quoting at 111.45 with a gain of 0.19%.