Euro rises in price against dollar by almost 1% after ECB meeting

The euro against the dollar rose on September 9 morning by almost 1%, as the markets continue to evaluate the decision on raising the key rate by the European Central Bank (ECB), Report informs referring to the auction data.

The euro against the dollar rose to $1.0075 from the previous close of $0.9994. The dollar against the yen fell to 142.72 yen from 144.09 yen. The dollar index (the exchange rate against a basket of currencies of six countries - US trading partners) decreased by 0.85%, to 108.77 points.

On September 9, the European Central Bank for the first time raised the rate by 75 basis points, now the figure is 1.25% per annum. In addition, the ECB noted that it expects further increases in the base rate at the next meetings.

World central banks tend to raise their key rates to fight inflation. In particular, the annual inflation in the Eurozone in August accelerated to a new record of 9.1%, more than 38% of inflation fell on the increase in energy costs. US data for August will be released next week.

Following the ECB’s decision, markets are more likely to expect a similar increase from the US Federal Reserve later in September. According to the CME Group, 84% of analysts are considering a 75-basis point increase in the Fed’s discount rate, to 3-3.25% per annum. A day earlier, 78% of experts assumed such a probability. In the summer, the Fed has already raised rates twice by 75 basis points.