Dollar Soars to Seven-Week High as Fed Raises Rates

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

The Fed's decision, which was widely anticipated by markets, lifted the greenback against other major currencies. The dollar index, which measures the value of the dollar against a basket of six currencies, reached 100.36, its highest level since July 31.

Markets had been expecting the Fed to raise rates, and the central bank's move was seen as a signal that it is committed to controlling inflation. The rate hike was accompanied by comments from Fed Chair Kevin Warsh, who reaffirmed the central bank's independence in setting monetary policy.

However, oil prices extended their decline on Thursday, which may have eased some of the dollar's gains. Oil prices are a key factor in currency markets because they can affect the value of currencies such as the euro and yen, which are often used to buy oil.