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Fed Rate Hike Sparks Dollar Surge and Euro Decline

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EUR USD
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The Federal Reserve of the United States has raised interest rates for the first time since 2023, increasing them by 25 basis points to 4%.

This decision was made unanimously and is aimed at controlling inflation, which remains high despite solid economic growth.

The markets are responding with a stronger dollar and a weaker euro, with the dollar index reaching 100.3 points and the euro falling to approximately 1.146 dollars, near seven-week lows.

The higher interest rates will also put pressure on European stock markets, as investors seek safer assets and may reduce their exposure to equities.

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