U.S. dollar firms after Fed’s policy announcement

U.S. dollar firms after Fed’s policy announcement

NEW YORK, Dec. 15 (Xinhua) — The U.S. dollar strengthened in late trading on Thursday, driven by hawkish messages from the Federal Reserve.

The Fed on Wednesday raised interest rates by 50 basis points, setting the target range for the federal funds rate to 4.25 percent to 4.5 percent, its highest level in 15 years.

At a press conference following the announcement, Fed Chair Jerome Powell said the central bank still had “some ways to go,” and the Fed’s updated economic projections showed that policymakers saw benchmark rates rising to a median level of 5.1 percent in 2023, above the 4.6 percent forecast back in September.

Traders also eyed other central banks as the Bank of England and the European Central Bank both raised rates by 50 basis points on Thursday.

The dollar index, which measures the greenback against six major peers, jumped 0.76 percent to 104.5570 in late New York trading on Thursday.

The euro was down to 1.0634 U.S. dollars from 1.0669 dollars in the previous session, and the British pound decreased to 1.2190 U.S. dollars from 1.2400 dollars in the previous session.

The U.S. dollar bought 137.73 Japanese yen, higher than 135.34 Japanese yen of the previous session. The U.S. dollar was up to 0.9282 Swiss francs from 0.9244 Swiss francs, and it rose to 1.3650 Canadian dollars from 1.3551 Canadian dollars. The U.S. dollar was up to 10.3259 Swedish Kronor from 10.1902 Swedish Kronor.

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Author: Shirley