Economic news

Dollar pulls back into negative territory after Fed's rate hike

The dollar retreated from three-week peak versus the yen on Thursday, reversing gains made after the Federal Reserve raised interest rates and signaled two additional rate hikes this year.

Photo: Reuters

The dollar index fell 0.2 percent to 93.525 after briefly climbing to 94.028 in the previous session.

The greenback last traded at 110.19 yen, slipping 0.15 percent, having lost momentum after touching a three-week high of 110.85 shortly after the Fed’s latest policy decision, which saw a strong forecast for the world’s largest economy.

The euro ticked up 0.1 percent to $1.1802, rebounding from $1.1725 touched after the Fed’s statements and climbing towards last week’s top of $1.1840.

The Aussie slid 0.35 percent to $0.7551.

After the Fed's rate hike, the market focus turned to the ECB’s policy meeting due in the day. Though the central bank is widely expected to stand its path, some analysts believe it may give clues on its plans to begin tapering winding down its 2.55 trillion euro bond-purchase program.

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