The U.S. dollar rallied in Asian trading on Thursday after the Federal Reserve signalled rate hikes later in the year, while China’s and New Zealand’s currencies fell on signs of weakness in those economies.
The market’s attention is now turning to other central bank decisions late this week, with the yen sliding to its weakest this year as the Bank of Japan begins its two-day policy meeting.
The dollar index rose 0.4% to 103.35 , recovering from a four-week low of 102.66 on Wednesday after the Fed held interest rates steady as expected but signalled that borrowing costs would increase by another 50 basis points (bps) by end-December.
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