The ICE U.S. Dollar index shot to the highest level since early September after the Federal Reserve left its key interest rate unchanged, but confirmed the start of the reduction its $4.5 trillion balance sheet. The U.S. central bank said it would start the the unwind in October at a pace of $10 billion a month, in line with analyst expectations. Meanwhile, the Fed’s interest-rate projections, or dot plots, suggest another rate hike in 2017, followed by three additional raises in 2018. All totaled, the policy update offered a hawkish turn for the dollar, which turned positive against key rivals like the euro , Swiss franc , and Canadian dollar , while breaking through ¥112 against the Japanese yen . The British pound , which initially defended its gains, also gave in and flipped into negative territory against the buck
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