Home Forex Dollar Soars on Fed Rate Hike, Pound Tumbles to 2-Week Low

Dollar Soars on Fed Rate Hike, Pound Tumbles to 2-Week Low

128
0
SHARE
hundred dollar bills

The dollar soared to a 14-year high against other major currencies on Thursday after the U.S. Federal Reserve raised rates and hinted that future hikes may come at a faster pace than anticipated in 2017.

The Fed raised its benchmark interest rate by 25 basis points in a move that was widely expected by markets. The central bank also signaled that rates would rise three times in 2017, which drove the dollar higher.

Higher rates make the dollar more attractive to yield-seeking investors.

Five of 17 Fed policymakers have boosted their outlook for interest rate hikes since September.

U.S. Treasury yields also surged on news of the Fed’s decision.

The dollar climbed to a 10-month high against the yen, up 0.68% to 117.8. The greenback is on track to secure its strongest quarter against the yen in more than two decades.

The euro fell 0.31% to trade at 1.0501 after hitting a low of 1.0469 overnight.

The currency found support after data showed the private sector in the euro zone continued its steady pace of expansion.

The pound, meanwhile, was trading at a two-week low against the dollar after the Bank of England held rates. The central bank said the decision to hold rates was unanimous.

Sterling fell 0.7% to 1.2476 against the dollar, its lowest level since November 30. The pound was also weaker against the euro, easing 0.31% to 0.8354.

Monetary policy committee members also decided in a 9-0 vote to maintain the bank’s bond-buying program target, and move forward with its plan to buy corporate bonds up to £10 billion.

The BoE expects inflation to reach its 2% target within the next six months.

Data out of the U.K. on Tuesday showed that the rate of inflation hit a two-year high in November at 1.2%.

The dollar index was up 0.95% to 103, its highest levels since 2003.

Jacob Maslow on BloggerJacob Maslow on FacebookJacob Maslow on GoogleJacob Maslow on LinkedinJacob Maslow on PinterestJacob Maslow on StumbleuponJacob Maslow on TwitterJacob Maslow on VimeoJacob Maslow on WordpressJacob Maslow on Youtube
Jacob Maslow
Online Marketing Consultant at Consultwebs
 Jacob Maslow offers clients effective digital marketing insights that enhance website visibility and improve SEO as an online marketing consultant at Consultwebs. His approach marries creativity to numbers to show significant ROI for marketing efforts. This Brooklyn native has spent years helping skilled professionals, including medical and legal professionals rank for relevant search terms.
Clients attain their marketing objectives with Maslow. He has helped boutique law practices in crowded markets rank No. 1 in Google ranking. His efforts doubled the revenue for Allergy Be Gone's non-Amazon sales to $4 million annually. SEO ranking and revenue growth are prioritized when Maslow consults with prospects and long-term clients. Maslow has over a decade of experience implementing SEO practices and running successful marketing campaigns.
In addition to working with clients in various fields, but often with those in legal, financial and medical areas, he is an author, offering his expertise to those seeking to improve their engagement with online audiences. Read what Maslow has to share with eager audiences on business.com and business2community.com, including recent articles: "4 Mistakes You Can Correct Today to Be a Social Media Superstar" and "6 Things SEO Can't Do for Your Business."
Maslow puts his connections to work for clients. He founded many news sites including: Forex Binary News; eThailand; Key Investing; Rapid News Network and StreetWise Journal. Jacob Maslow stays busy as owner of Legal Scoops, Daily Forex Report, Investing Alerts and bestportablechargerz. Feel free to seek his advice on Facebook, Quora and Slideshare or contact Jacob Maslow directly.
SHARE
Previous articleDollar, Aussie Steady as Canadian Dollar Gains Ahead of Fed Decision
Next articleUS Dollar Index Higher on White House Tax Reform Comments
 Jacob Maslow offers clients effective digital marketing insights that enhance website visibility and improve SEO as an online marketing consultant at Consultwebs. His approach marries creativity to numbers to show significant ROI for marketing efforts. This Brooklyn native has spent years helping skilled professionals, including medical and legal professionals rank for relevant search terms. Clients attain their marketing objectives with Maslow. He has helped boutique law practices in crowded markets rank No. 1 in Google ranking. His efforts doubled the revenue for Allergy Be Gone's non-Amazon sales to $4 million annually. SEO ranking and revenue growth are prioritized when Maslow consults with prospects and long-term clients. Maslow has over a decade of experience implementing SEO practices and running successful marketing campaigns. In addition to working with clients in various fields, but often with those in legal, financial and medical areas, he is an author, offering his expertise to those seeking to improve their engagement with online audiences. Read what Maslow has to share with eager audiences on business.com and business2community.com, including recent articles: "4 Mistakes You Can Correct Today to Be a Social Media Superstar" and "6 Things SEO Can't Do for Your Business." Maslow puts his connections to work for clients. He founded many news sites including: Forex Binary News; eThailand; Key Investing; Rapid News Network and StreetWise Journal. Jacob Maslow stays busy as owner of Legal Scoops, Daily Forex Report, Investing Alerts and bestportablechargerz. Feel free to seek his advice on Facebook, Quora and Slideshare or contact Jacob Maslow directly.

LEAVE A REPLY