Euro holds above two-decade low after record ECB rate hike

LONDON, Sept 8 (Reuters) – The euro held above a twenty-year low on Thursday after the European Central Bank raised interest rates by a record 75 basis points, taking the deposit rate above 0% for the first time since 2012, in an attempt to tame surging inflation.

The central bank said it expected to continue raising rates to dampen demand, prioritising the fight against inflation even as the euro zone heads towards a likely winter recession. read more

“For the euro, the confirmation of a 75bps hike provided the impetus for a brief rally,” said Simon Harvey, head of FX analysis at Monex Europe in London, noting the single currency failed to hold higher as focus turned to ECB President Christine Lagarde’s press conference and the deteriorating economic backdrop.

By 1140 GMT, the euro was trading flat at $1.00035,…