Dollar Soars Against Euro After Fed's Unanimous Rate Hike

The US dollar surged against the euro after the Federal Reserve's unanimous decision to hike interest rates by 25 basis points, accompanied by a hawkish risk assessment that emphasized upside inflation risks.

The Fed's move pushed the dollar higher alongside short-term US Treasury yields, while strong August retail sales data reinforced the perception of resilient US growth and accommodative monetary policy.

According to Danske Research Team, the updated dots were modestly hawkish relative to expectations, with eight participants still seeing rates rising to 4.25-4.50% in 2027.