EUR/USD Rebounds as Dollar Retreats After Fed Hike

The EUR/USD pair is experiencing a rebound after falling to a seven-week low of 1.1460 following the Federal Reserve's first rate hike since July 2023.

The euro slipped to this level in early Asian trading on Thursday, but then recovered as oil prices fell and U.S. Treasury yields moved away from their highs, causing the dollar index to ease to 100.08 from its strongest level since July 31 at 100.37.

The dollar did most of the damage, with EUR/USD hovering near levels last seen on July 31. The pair is still being driven by U.S. yields and oil prices, which are expected to continue falling.

A return of the 10-year Treasury yield above 5% could send the euro back through 1.1460, while a path difference between the Fed's and ECB's policy rates continues to influence the pair's movement.