NEW YORK: The US dollar rose on Thursday after Federal Reserve Chair Jerome Powell reiterated that it will continue to raise interest rates in order to tame surging inflation and warned against prematurely loosening monetary policy.

Across the Atlantic, the European Central Bank raised interest rates by a record 75 basis points, taking the deposit rate above 0% for the first time since 2012. The euro initially went above parity against the dollar, but has since weakened in the wake of Powell’s comments.

Fed officials are soon due to enter a blackout period prior to the central bank’s Sept. 20-21 meeting. In remarks at a Cato Institute conference, Powell said the Fed needs to keep going until it gets the job done and is “strongly committed” to bringing inflation down.

“Once again, Powell reiterates the Fed’s job, that they’re mandated by Congress to maintain price stability and employment,” said Randy Frederick, managing director of trading and derivatives, at Charles Schwab in Austin, Texas.