LONDON (Thomson Financial) - The euro climbed to a fresh all-time high against the dollar after a hawkish European Central Bank monthly bulletin, amid ongoing concern about the US sub-prime mortgage market.The ECB said it is monitoring inflation risks closely and remains ready to raise interest rates further if necessary.
It added that interest rates remain "on the accommodative side" even after its June 6 rate hike, which took the main refinancing rate to 4.00 pct, and the medium-term inflation outlook remains subject to upside risks.
The bulletin's release pushed the euro to a fresh all-time high of 1.3791 usd.
"Arguably the market is looking for suggestions that the ECB will not settle for a single rate hike in September, but that we may see further tightening later in the year," said David Jones, chief market analyst at CMC Markets.
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