In European trading on Friday (Oct 28), / fell back from high to temporarily trade at 0.9975, up 0.12%.
The eurozone decided to raise interest rates sharply and reaffirm its commitment to curbing rising prices, despite the turmoil in energy markets that has hit its economy.
Price inflation in the euro zone is now running at five times the 2% target.
The move is in line with recent moves.
But it unexpectedly slowed the pace of tightening on October 26 because of the risk of a downturn in the economy.
“Inflation is still too high and will remain above target for an extended period,” the ECB said in a statement.
“The Governing Council has taken today’s decision and expects to raise interest rates further to ensure that inflation returns to its medium-term inflation target of 2 per cent in a timely manner.
Ms. Lagarde and her colleagues are raising interest rates at a pace almost unimaginable earlier this year, and with European households facing soaring heating and mortgage bills, the focus is shifting to how high they can eventually go.
The euro consolidated gains against the dollar below parity as traders awaited key German growth and inflation data on Friday.
Despite the subdued sentiment, the dollar and Treasury yields continued to weaken, helping both currencies.
Us PCE inflation is also of concern.
