Eurozone interest rates hit a seven-year high on Thursday but markets were relieved by a less hawkish tone from the European Central Bank, which damped fears of further rises to come.

The ECB comments prompted a fall in the value of the euro against the dollar and helped pare back slightly the earlier record high oil price of $145.85 a barrel. It also contributed to a modest recovery in European and US equity markets, which were also relieved by the publication of American jobs data less gloomy than had been feared.