Dollar Eases as Markets Anticipate Further Rate Hikes from BoJ

The US dollar has eased from its seven-week high after investors reacted to the Federal Reserve's latest interest rate hike.

The Fed raised its benchmark interest rate by 0.25 percentage point to a range of 3.75% to 4%, which was widely expected.

However, the Fed suggested that further rate increases could be needed to address inflation, leading some investors to believe there could be more than one additional hike in 2026 and three more by the end of next year.

The dollar index jumped 0.7% on Wednesday but slipped 0.2% to 100.07 on Thursday as US Treasury yields eased.