Euro slips as dollar rises after ECB rate hike

The dollar rose against major currencies on Thursday, reversing some of this week's losses triggered by rising oil prices and global bond yields, while the euro fell after the European Central Bank delivered an expected rate increase.

The ECB raised interest rates by 25 basis points, marking the second time this year the central bank has moved to quell an energy-driven rise in inflation triggered by the Iran war.

The euro dropped immediately after the decision and was last down 0.03% against the dollar at $1.163. Against the Swiss franc, the dollar strengthened 0.14% to 0.811.

The main driver of the dollar's gains appeared to be U.S. producer prices data, which came in in line with market expectations and boosted the chances of a Federal Reserve rate hike next week, said Eugene Epstein, head of structured products North America at Moneycorp.