The US Federal Reserve raised interest rates for the first time since 2023, signaling ongoing monetary tightening. According to FX Street, this widely expected move supports a prolonged restrictive policy, with 16 of 18 Fed officials anticipating at least one more hike before the end of the year.
The US Dollar Index extended its winning streak to six consecutive days, trading around 100.30 during Asian hours on Thursday, while the Canadian Dollar slid to a five-week low, with USD/CAD near 1.4000. Meanwhile, EUR/USD declined to approximately 1.1460. Gold prices remain pressured, struggling to rise above $4,300 and hovering near a six-week low, FX Street reported.
Bitcoin showed little immediate reaction to the rate hike, according to CoinTelegraph. For Japanese investors, the Fed’s hawkish stance and a stronger dollar could influence capital flows and FX volatility, particularly affecting JPY pairs and cryptocurrency exposure.