European Central Bank president Jean-Claude Trichet has said the financial markets are not wrong in betting on a further rise in euro zone interest rates in June.
The euro briefly touched $1.35 after Trichet's comments - its highest level for more than two years.
Asked at a news conference whether market expectations for a June rate rise were correct, Trichet said he 'will not contradict' any such expectations.
Nevertheless, he insisted that the ECB had not 'pre-committed' to any pre-set timetable of interest rate moves.
The ECB held its key rate steady at 3.75% at its regular monthly policy-setting meeting, just a month after raising them by a quarter of a percentage point to their highest level in five and a half years.
