The United States dollar (USD) fell in late trading on Wednesday following the US Federal Reserve (Fed) raised its key rate by half a percentage point, the first tightening of this magnitude since 2000.
The Federal Open Market Committee, the decision-making body of the Fed, has decided to raise its target for key rates by bringing it to a range between 0.75% and 1%, the Fed announced in a press release published at the end of its two-day monetary policy meeting. This key rate hike was widely anticipated.
The committee also decided to start reducing its holdings of government-owned treasury bills, bonds and mortgage-backed securities from June 1, the statement said.
The dollar index, which measures the value of the US currency once morest six other major currencies, fell 0.85% to 102.5860.
At the end of the session on the New York Stock Exchange, the euro gained ground to reach one euro for 1.0621 dollars, once morest one euro for 1.0529 US dollars in the previous session, while the British pound rose to a British pound for 1.2581 US dollar, once morest a British pound for 1.2491 dollar during the previous session. The Australian dollar for its part rose from one Australian dollar to 0.7232 US dollars, once morest one Australian dollar to 0.7095 US dollars.
One US dollar was trading once morest 128.738 Japanese yen, down from 130.18 yen in the previous session. The US dollar also fell once morest the Swiss franc and the Canadian dollar, to US dollar for 0.9747 Swiss franc, once morest US dollar for 0.9786 Swiss franc previously, and US dollar for 1.2740 dollar Canadian, instead of one US dollar for 1.2840 Canadian dollars respectively.
