US dollar hits seven-week high after Fed rate hike

The US dollar surged to a seven-week high following the Federal Reserve's interest rate hike and hints of potential further rate increases. On Thursday, the currency reached its peak level in seven weeks, driven by the Fed's decision to raise rates and its projection of additional hikes ahead. The Fed's new chief, Kevin Warsh, aligned with other officials in a unanimous decision to raise rates, signaling a tighter monetary policy and a possible 2026 hike.

Meanwhile, the euro dropped to $1.1456, near its lowest in seven weeks, and the British pound stayed steady at $1.3377 as traders awaited a Bank of England announcement later. The Japanese yen also struggled, trading at 156.20 per dollar, close to a two-week low, as investors awaited a Bank of Japan policy decision. The dollar index, which tracks the greenback against a basket of major currencies, reached 100.33 in recent trading, its highest since July 31. The Australian dollar was at $0.7096, and the New Zealand dollar remained at $0.5713.