NEW YORK: The dollar gained against the euro after the European Central Bank eased its pace of rate hikes, a day after the Federal Reserve hiked rates by 25 basis points and indicated that it may pause further increases.

The ECB’s 25-basis-point increase was the smallest since it started lifting them last summer, but the bank also signalled that more tightening would be needed to tame inflation.

The dollar index was last up 0.30% on the day at 101.52. The index is holding just above a one-year low of 100.78 reached on April 14, and has fallen from a 20-year high of 114.78 on September 28.

The euro fell 0.52% to $1.1004. It reached a 13-month high of $1.1096 last week. The dollar also fell 0.33% to 134.18 Japanese yen.

Sterling dipped 0.06% to $1.2561 after hitting $1.2593 earlier on Thursday, the highest since June 2022.

The greenback was last down 0.17% against the Norwegian crown at 10.73 after Norway’s central bank raised interest rates by 25 basis points as expected.