The dollar fell against the euro on Thursday after the European Central Bank announced that it will maintain the key interest rate at the current level of 0.75 per cent.

The single currency climbed from $1.2903 on Wednesday evening to $1.3019 following the meeting.

The ICE dollar index dropped from 79.967 to 79.352 overnight.

Speaking at the central bank's monthly press conference, President Mario Draghi said the ECB has already done everything in its hands. He also said that inflation rates will stay above 2% and that economic growth will remain weak in the Eurozone in 2012.

Among his most important statements being echoed by the press is his reassurance that the euro is irreversible and that the ECB is independent in its decision-making. Likewise, he defended the appropriateness of the ECB´s actions to date.

Analyst Craig Erlam from Alpari said this afternoon: "It's very difficult to argue with this point, all you have to do is look at the borrowing costs of the peripheral countries to see that investors are much more comfortable with the situation in the Eurozone than they were a few months ago."

The British pound traded at $1.6182 last night, compared to $1.6075 the previous evening.

NR

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