Euro edges higher against dollar after ECB leaves rates unchanged
TLT•The euro rose 0.11% to about $1.1163 after the European Central Bank held rates steady, while the dollar weakened after US data showed inflation accelerated in September. The ECB said energy costs were increasing inflation risks and announced President Christine Lagarde will leave on February 7.
1. ECB holds rates steady
The European Central Bank left interest rates unchanged, a widely expected move, but warned that inflation risks were rising because of surging energy costs. The euro was last up 0.11% at around $1.1163, after falling to its lowest against the dollar since May.
2. Lagarde to leave early
The ECB announced that President Christine Lagarde will step down on February 7, ahead of the end of her tenure in October 2027. European economist Marchel Alexandrovich said the ECB’s decision signaled that a rate increase in December was firmly in play, citing upside risks to inflation.
3. Dollar eases after data
US data showed inflation accelerated in September as consumers paid more for gasoline and other goods, while the economy grew faster than expected in the third quarter. Markets were pricing in a nearly 80% chance of a Federal Reserve rate increase in December. The dollar index fell 0.08% to 102.02.
