US Dollar hits seven-week high following Federal Reserve rate hike

The US Dollar has reached a seven-week high following the Federal Reserve's decision to raise interest rates. The move, supported by a unanimous vote including new Fed Chair Kevin Warsh, included signals of further monetary tightening, with expectations of additional hikes through 2026. This hawkish stance has caused the Euro and British Pound to trade near seven-week lows against the Dollar.

Global markets are currently focused on a series of critical central bank decisions. Investors are awaiting the Bank of England's interest rate decision amid concerns over energy costs and inflation. Simultaneously, the Bank of Japan is expected to raise interest rates to their highest level in 31 years, continuing a shift away from decades of low-interest policies to combat inflationary pressures driven by rising oil prices.