US dollar hits seven-week high after Fed rate hike

The US dollar reached its highest level in seven weeks on Thursday, buoyed by the Federal Reserve’s decision to raise interest rates and its signal that additional hikes may be possible in the coming months.

The move followed new central bank chief Kevin Warsh joining a unanimous vote to increase rates, with officials forecasting further monetary tightening and another potential increase in 2026.

Meanwhile, the euro slipped to $1.1456, near its lowest in seven weeks, while the British pound held steady at $1.3377 as markets awaited a Bank of England decision later in the day.

The Japanese yen traded at 156.20 per dollar, close to a two-week low, as investors looked ahead to a Bank of Japan policy announcement on Friday.

Other currency indicators

The dollar index, which measures the greenback against a basket of major currencies, stood at 100.33 in recent trading, its strongest since July 31. The Australian dollar was at $0.7096, while the New Zealand dollar held at $0.5713.