Dollar Retreats as Markets Expect Further Rate Hikes

The US dollar reached a seven-week high against six major peers after the Federal Reserve's rate hike, but it eased back on Thursday as Treasury yields and oil prices retreated.

The dollar index was about flat at 100.23 on Thursday, having risen 1.4% in the past week.

Mark Chandler, chief market strategist at Bannockburn Forex, said the dollar moves with US interest rates and that Wednesday's surge had been corrected due to lower Treasury yields and moderating oil prices.

The Fed has signaled further tightening, but markets are still more hawkish than policymakers, pricing in multiple rate hikes this year and next.