Dollar Rises to Seven-Week High on Fed Rate Hike, Oil Prices Weigh

The US dollar reached a seven-week high on Thursday after the Federal Reserve raised interest rates and reaffirmed its commitment to curbing inflation. The Fed's move was seen as a clear signal of its intention to tighten monetary policy, with analysts noting that markets are pricing in more rate hikes than policymakers project.

However, the dollar later eased as oil prices extended their decline on reports of Saudi Arabia offering extra crude cargoes through Oman. This led to a rise in the euro and yen, with the dollar index slipping 0.10% to 100.20.

The Bank of Japan is also expected to raise interest rates on Friday, with market participants focused on any hints from Governor Kazuo Ueda on the timing and pace of further increases.