Dollar Reaches Seven-Week High After Hawkish Fed Decision

The US dollar reached a seven-week high after the Federal Reserve hiked interest rates and signaled further tightening.

However, the dollar's gains were short-lived, easing by 0.2% to 100.07 on Thursday, after rising 0.7% in the prior session.

Marc Chandler, chief market strategist at Bannockburn Forex, attributed the dollar's move to US interest rates, stating 'I think that the dollar moves along with US interest rates right now.'

The Fed may have delivered on market expectations, but it still might not raise rates as aggressively as investors anticipate, making the dollar vulnerable to any disappointment.