Dollar Retreats on Lower Yields and Oil Prices

The US dollar paused its rally after the Federal Reserve's interest rate hike, as Treasury yields and oil prices retreated on Thursday. The euro rose 0.1% to $1.14755, after falling 0.7% on Wednesday.

According to Marc Chandler, chief market strategist at Bannockburn Forex, 'the dollar moves along with US interest rates right now.' With Treasury yields easing after Wednesday's rise, 'the dollar corrects a little bit,' he said.

The Bank of England held rates unchanged but warned that prolonged conflict in the Middle East may require tighter policy. Sterling dropped slightly against the euro and the dollar after this announcement.