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US Dollar
Source: Newsmaker.id
The US dollar strengthened to a daily high during Wednesday's trading (Sept 16) after the Federal Reserve raised interest rates by 25 basis points, in line with market expectations. The Bloomberg Dollar Spot Index rose as much as 0.2% to 1,199.59.
The Fed also signaled that the possibility of an additional rate hike by year-end remains open. This statement provided renewed support for the dollar as the market maintained expectations for a tight monetary policy.
The EUR/USD pair fell approximately 0.2% to 1.1517, while GBP/USD weakened 0.4% to 1.3428. The pound also faced pressure after UK inflation rose again ahead of the Bank of England's interest rate decision.
Meanwhile, USD/JPY rose about 0.1% to 155.25. Newsmaker Analysis: the dollar's rise indicates that the market is responding not only to the Fed's rate hike decision but also to signals of further tightening. As long as the Fed keeps the door open for additional rate hikes, the dollar has the potential to maintain its positive momentum.
Source: Newsmaker.id