Dollar Consolidates After Fed Rate Hike

The US Federal Reserve's rate hike had an initial impact on interest rates and the dollar, despite being well anticipated. The rate hike was expected, and as a result, the US dollar rose against several currencies. This included a significant milestone for the Mexican peso (MXN), which traded above MXN19.20 against the dollar for the first time in over a month.

The Bank of England's decision to hold steady with a 6-3 vote was also anticipated, but it did indicate that a rate hike is on the horizon. This news contributed to the consolidation of the dollar. The reaction to these events suggests that markets are taking the Fed's actions and future rate hikes into consideration.