NEW YORK: The US dollar weakened in late trading on Wednesday following a closely-watched rate decision from the Federal Reserve, reported Xinhua.
The dollar index, which measures the greenback against six major peers, decreased 0.7 per cent to 106.4420.
In late New York trading, the euro rose to US$1.0198 from US$1.0126 in the previous session and the British pound rose to US$1.2166 from US$1.2029 in the previous session. The Australian dollar was up to US$0.7000 from US$0.6933.
The US dollar bought 136.48 Japanese yen lower than 136.68 Japanese yen of the previous session. The US dollar fell to 0.9593 Swiss franc from 0.9629 Swiss franc and it was down to 1.2834 Canadian dollars from 1.2896 Canadian dollars.
The Fed on Wednesday raised its benchmark interest rate by 75 basic points, the second in a row of that magnitude, as it races to tame inflation that’s running at a four-decade high.
The Federal Open Market Committee, the Fed’s policy-making body, decided to raise the target range for the federal funds rate to 2.25 to 2.5 per cent and “anticipates that ongoing increases in the target range will be appropriate,“ the US central bank said in a statement after a two-day policy meeting.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,“ the Fed said in a statement after a two-day policy meeting, adding that the central bank is “highly attentive to inflation risks.”
“The war (in Ukraine) and related events are creating additional upward pressure on inflation and are weighing on global economic activity,“ the Fed said.
The statement showed that all 12 committee members voted for the decision. — Bernama