How has the Euro Reacted to the ECB’s Interest Rate Increase?

The European currency, the euro, rose against its US counterpart today, Friday, after the European Central Bank decided to raise interest rates, despite banks facing financial problems.

In the foreign exchange market, the European currency rose by 09:29 Moscow time by 0.53%, to $1.0666.

Yesterday, the European Central Bank announced that it would raise its official interest rate by 0.5% to 3.5% despite the turmoil in the banking sector and financial markets.

This comes contrary to expectations that the bank will reverse growth following the recent collapse of the Silicon Valley bank and the financial problems of Credit Suisse, amid fears that high interest rates will affect the global banking system.

Source: RT + Bloomberg