Euro bounced from a near two-month low against the US dollar as the European Central Bank (ECB) decided on Thursday to raise all the three key interest rates by 25 basis points. The deposit facility rate through which the ECB steers the monetary policy stance will be lifted to 2.25 percent and the rates on the main refinancing operations and marginal lending facility will stand at 2.4 percent and 2.65 percent respectively, the ECB noted. The outlook remains uncertain, with upside risks for inflation and downside risks for economic growth, it stated. The interest rate hike on Thursday is the first time that the ECB has lifted its key interest rates since September 2023. The single currency was also boosted by a return in risk appetite amid shifting geopolitical cues and pushed up above 1.1600 mark. EUR/USD currently quotes at 1.1606, up marginally on the day.
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