The European Central Bank has announced a cut in its interest rates in order to control the rise in the European common currency.

The move comes after the Euro rose to its highest level since 2011. The ECB announced a cut in its main rate on 7 November by a quarter-point to a record 0.25 per cent. The euro fell as much as 1.6 percent against the dollar on the day of the rate cut. There are indications from the Czech Republic and Australia that the currency has gone up significantly and the central banks might intervene to control its rise. New Zealand has also delayed its interest rates in order to boost sales. Experts have said the currency valuation is a serious concern for the central banks in the country.

ECB President Mario Draghi has been working to bring down the euro since early this year. The International Monetary Fund has downgraded the outlook for the global economy and inflation levels in various countries have worried central banks and governments that that it would hinder investment.

Experts have called for countries to refrain from competitive devaluation and not start a currency war in the global economy.