Fri, 07 Oct 2022

U.S. dollar slips after Fed's rate hike

16 Jun 2022, 06:55 GMT+10

NEW YORK, June 15 (Xinhua) -- The U.S. dollar weakened in late trading on Wednesday as market participants digested the Federal Reserve's latest decision on rates.

The dollar index, which measures the greenback against six major peers, fell 0.37 percent to 105.1630.

In late New York trading, the euro rose to 1.0424 U.S. dollars from 1.0414 dollars in the previous session, and the British pound rose to 1.2124 U.S. dollars from 1.1973 dollars in the previous session. The Australian dollar was up to 0.6978 U.S. dollars from 0.6864 U.S. dollars.

The U.S. dollar bought 134.09 Japanese yen, lower than 135.32 Japanese yen of the previous session. The U.S. dollar was down to 0.9984 Swiss franc from 1.0030 Swiss francs, and it was down to 1.2928 Canadian dollars from 1.2966 Canadian dollars.

The above market reactions followed a pronounced appreciation of the U.S. dollar in recent days as traders bet on aggressive Fed tightening amid surging inflation.

The Fed on Wednesday raised its benchmark interest rate by 75 basis points in an effort to fight red-hot inflation. The move marks the sharpest rate hike since 1994, bringing the key benchmark federal funds rate to a range between 1.5 to 1.75 percent.

"Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures," the U.S. central bank said in a statement after a two-day policy meeting.

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