The euro remained steady against the dollar this afternoon following a European Central Bank (ECB) announcement of a rise in interest rates.

The euro stood at 1.4572 against the pound, while the dollar was at 1.19913 to the single currency this afternoon.

The ECB has raised rates by 0.25 per cent to 2.5 per cent, in a move which analyst said did not surprise them.

"There was no surprise with the interest rate move, but the market will be looking for more indications from [ECB President] Trichet as to whether the ECB will raise rates again this year," Geoff Kendrick, currency strategist at Westpac, told the Reuters news agency.

The euro has been buoyant this week following the release of data that manufacturing in the EU rose at its sharpest level for 19 months.

The currency has also been boosted by significant rises in German engineering orders and retail figures, which rose by 25 and 2.7 per cent respectively.