US Dollar Jumps as Fed Holds Rates, Hints at Hike

The US Dollar Index (DXY) rose sharply on Wednesday, approaching the 100.40 mark, following the Federal Reserve’s June policy decision. As widely anticipated, the central bank kept its benchmark interest rate steady at 3.50%-3.75%.

This was the first Federal Open Market Committee meeting chaired by Kevin Warsh. The accompanying statement and commentary hinted at a possible rate increase in upcoming meetings, fueling dollar demand.

Traders will now focus on further economic data and Fed communication for clues on the timing of the next rate move.