U.S. Dollar Adds To Weakness After Federal Reserve Raises Interest Rates

The U.S. dollar extended its decline against its major rivals on Wednesday, after the Federal Reserve announced an increase in its key interest rate, as had been widely expected. The dollar saw particular moves against the euro and the yen, adding to its weakness in both cases. The euro traded at $1.0666, a move of 0.6% on the day. Against the yen , the dollar traded at �113.84, a move of 0.8%. Prior to the announcement, the euro had been up 0.3% against the buck while the yen was up 0.2%. In its statement, the Fed's "dot plot" still signaled two additional rate hikes in 2017; some investors had speculated that the U.S. central bank may have been on track to raise rates by four times this year.

Copyright © 2017 MarketWatch, Inc.