The Euro edged higher in the European market on Friday against a basket of global currencies, maintaining its gains for the second consecutive day against the U.S. dollar. This follows the European Central Banks monetary policy meeting, during which the bank warned of rising inflation risks stemming from the repercussions of the Iran war.

ECB President Christine Lagarde stated that the option of raising interest rates was discussed extensively, noting that the upcoming meeting in June will be the "appropriate time" to re-evaluate the path of monetary policy.

Price Overview

* Euro Exchange Rate Today: The Euro rose against the dollar by less than 0.1% to ($1.1737), from an opening price of ($1.1731), after recording a session low of ($1.1725).

* The Euro ended Thursday's trading up 0.45% against the dollar, marking its first gain in three days. This recovery followed a dip to a three-week low of 1.1655 dollars earlier in the session.

* Throughout April, the Euro achieved a 1.55% gain against the dollar, its first monthly advance in three months. This rise was supported by temporary pauses in the Iran conflict and growing hopes for a permanent peace agreement in the Middle East.

The European Central Bank

In line with expectations, the ECB kept its key interest rates unchanged yesterday at 2.15%the lowest level since October 2022marking the seventh consecutive meeting without a change.

In its policy statement, the ECB highlighted elevated inflation risks and an increasing likelihood of an economic slowdown. These pressures are attributed to high energy prices resulting from the war with Iran and ongoing tensions in the Strait of Hormuz.

The bank emphasized that it remains data-dependent and will decide on a meeting-by-meeting basis without committing to a specific rate path, standing ready to adjust all tools to ensure inflation stabilizes at the 2% medium-term target.

Christine Lagarde

ECB President Christine Lagarde stated on Thursday that the Governing Council reached a unanimous decision to hold rates, despite a lengthy discussion regarding the "option to hike." She indicated that June will be the "appropriate time" to reassess the direction of monetary policy.

European Interest Rates

* Following the meeting, money market pricing for a 25-basis-point rate hike by the ECB in June rose from 35% to 55%.

* To refine these expectations, investors are awaiting further Eurozone economic data concerning inflation, unemployment, and wage levels.