Dollar Rallies as Fed Hikes Rates Amid Global Market Flux

The US dollar saw significant gains after the Federal Reserve raised interest rates for the first time since 2023. This decision was made in line with expectations and added to the dollar's overall strength.

Meanwhile, the pound weakened against its peers as UK inflation data showed a slight acceleration from 2.9% to 3.1% in August, but core inflation remained steady at 2.6%. The Bank of England is expected to keep interest rates unchanged later today.

The euro's movement was relatively subdued following disappointing industrial production data that showed a 0.1% decline in July, although this fell short of the predicted 0.2% contraction.