The European Central Bank, as had been widely expected, lifted its key lending rate Thursday by 25 basis points, the first move the bank has made in a year.
The ECB, which had been sending signals it was more worried about inflation than a slowdown in Europe's economy, raised rates to 4.25% from 4%. The last change was in June 2007.
Analysts and traders had been anticipating the hike. Ahead of the decision, the dollar had been trending lower against the euro.
This article was written by a staff member of TheStreet.com.