ECB stands firm on rate as euro hits high

EUROPE’S single currency hit yet another record high against the dollar at $1.5372 as the ECB left its key interest rate unchanged at 4%.

Comments from bank president Jean-Claude Trichet about his concerns for the medium term outlook for inflation, raised doubts about an early interest rate cut and investors bought the euro driving it to new records before falling back slightly to $1.5351.

In the short term, it is expected the euro will continue to rise against the greenback as the US Federal Reserve continues to cut rates.