Dollar Hits Seven-Week High as Fed Hikes Rates Amid Inflation Concerns

The US dollar reached a seven-week high after the Federal Reserve raised interest rates and signaled further hikes in the coming months.

The decision, which was unanimous, was led by new central bank chief Kevin Warsh, who sounded more hawkish than expected and provided guidance on future hikes.

This surprise move caused markets to reprice policy higher, pushing the dollar higher alongside US Treasury yields.

Currency strategist Carol Kong at Commonwealth Bank of Australia said that Warsh's guidance was a key factor in the dollar's strength.

The dollar index, which measures the greenback against a basket of currencies, last traded at 100.3, near its strongest since July 31.