Investors will be watching the euro Thursday after the European Central Bank raised interest rates as widely expected.

The euro has powered to a 15-month high, taking related exchange traded funds (ETFs) such as CurrencyShares Euro Trust (NYSEArca: FXE) along for the ride as markets positioned for a rate increase from the ECB, which boosted its key rate by a quarter-point to 1.25% on Thursday.

The euro’s rise has further impaired the U.S. dollar. [Euro’s Record Quarter Boosts Currency ETFs.]

The ECB’s interest-rate decision is ratcheting up speculation in the euro. In the U.S., meanwhile, the government standstill looms while Republicans and Democrats are in a stalemate over the budget.

The ECB made its first hike in nearly three years on Thursday as it frets about inflation.

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