Dollar Surges as Fed Hikes Rates Amid Inflation Fears

The US dollar strengthened against other major currencies in the Asian session on Thursday following the Federal Reserve's interest-rate hike. The Fed delivered its first rate increase since July 2023, signaling that rates may need to go higher still to control inflation.

According to forecasts published after the meeting, Fed officials expect the federal funds rate to end this year at 4.1 percent, up from the current range of 3.75 percent to 4 percent following a 25-bps increase.