The euro fell against the dollar on Thursday after the European Central Bank (ECB) announced it would keep interest rates unchanged. The central bank’s decision disappointed some investors who had anticipated a more hawkish stance, leading to a sell-off of the euro.

The ECB’s key interest rate remains at 0.0%, while the deposit rate stays at -0.4%. The marginal lending facility is unchanged at 0.25%. ECB President Mario Draghi cited ongoing uncertainties and the need for continued monetary policy support.

Analysts noted that the ECB’s cautious approach contrasted with the Federal Reserve’s more aggressive tightening cycle, further boosting the dollar’s appeal. The divergence in monetary policy between the two central banks is expected to continue to weigh on the euro-dollar exchange rate.

Key factors influencing the euro’s performance include:

• The ECB’s monetary policy decisions
• Economic data releases from the Eurozone
• The strength of the US dollar
• Global risk sentiment

The euro’s near-term outlook remains uncertain, with traders closely monitoring upcoming economic data and any signals from the ECB regarding future policy adjustments.