Fed Hikes Rates Amid Global Tightening

The Federal Reserve has raised its benchmark interest rate to 3.75-4.00%, marking its first increase since 2023.

This move affects a Dollar Index basket, which measures the US currency against six other currencies, including the Euro and Yen.

The Euro alone accounts for 57.6% of this index, while the Yen and Pound account for nearly four-fifths of its total weight.

The European Central Bank (ECB) raised its deposit rate to 2.50% six days ago, and the Bank of England is expected to follow suit tomorrow at 11:00 GMT.