EUR/USD Climbs back to 1.34 after ECB Rate Decision

The euro fell to a more than seven-week low against the dollar on Thursday after the European Central Bank shocked investors by cutting interest rates and said that policy will remain accommodative for as long as necessary.

Adding to dollar strength was data showing the U.S. economy accelerated in the third quarter while jobless claims fell in the latest week, supporting the case for a cutback in stimulus by the Federal Reserve later this year.

The ECB on Thursday cut borrowing costs to a record low of 0.25 percent in response to a sharp drop in inflation. Although some in the market had expected a rate cut as early as this week, traders said most were betting the ECB would wait until December.


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