Euro fails to hold onto gains after ECB Rate Decision

The Euro fell against the Dollar yesterday after the European Central Bank kept interest rates at 1%.

The Single Currency had previously rallied following comments from ECB President Mario Draghi, who stated the central bank had not considered lowering the headline rate and inflation was likely to remain above 2% throughout 2012.

Opinion remains divided over the outlook for the Euro, with many questioning why it has not fallen further given the uncertainty in the Eurozone. However, a growing number of analysts are predicting long-term Euro weakness as the member state struggles to cope with and address the crisis.