Dollar Reaches Seven-Week High as Fed Raises Interest Rates

The US dollar reached a seven-week high after the Federal Reserve raised interest rates and reaffirmed its commitment to curbing inflation.

The Fed's decision, announced on Wednesday, signaled further hikes in interest rates. Chair Kevin Warsh emphasized the central bank's independence despite repeated calls from President Donald Trump for lower borrowing costs.

Market participants were relieved that the Fed provided clear guidance, which could have otherwise caused American assets to face headwinds.

The dollar index reached 100.36, its strongest level since July 31, before easing slightly as energy prices extended their fall.