ECB keeps key interest rate at 1%, to almost everyone's benefit

Second, and almost as significant, had the ECB increased key, short-term rates, that action would have placed even more pressure on the dollar. The dollar has weakened about 9% versus the euro in 2009, largely on the U.S. government's back-to-back $1 trillion deficits, stemming from the bank bailout and fiscal stimulus package.

However, encouraged by the ECB's stand-pat stance on rates, the euro was virtually unchanged versus the dollar, strengthening just one-fifth of a cent to $1.5065 in Thursday trading at mid-day.

Monetary Analysis: Of course, the primary factors in the ECB's rate decision are the euro-zone's inflation and economic performance, but the central bank is also a key institution in global economic policy. Moreover, the last thing the ECB wants to do is take steps that would weaken the dollar further, a condition that has boosted commodity prices, especially oil. Raising interests prematurely would have had that effect, hence the ECB's stand-pat stance is welcome, as it will both support the euro-zone and global economic recoveries, and help stabilize the dollar.