# Euro Rate Declined Following European Central Bank Decision

Despite the European Central Bank's interest rate increase, the euro's exchange rate against the dollar declined. On Thursday, the euro's value fell by 0.15% and reached 1.1518 dollars. It should be noted that interest rates have increased for the first time in the last three years, which aims to control inflation against the backdrop of possible energy resource price increases.

In parallel, the American dollar remains at its two-month maximum level, which is linked to escalated geopolitical tensions between the United States and Iran. President Donald Trump's statements about possible strikes on Iran's oil infrastructure are causing uncertainty among investors. As a rule, during periods of increased geopolitical risk, investors give preference to the dollar as a safe asset, which supports its strengthening. Nevertheless, analysts note that these events were not unexpected for investors.

Source: Investing.com