Central Bank Interest Rate Increases Boost the Recovering Dollar

The dollar made up for losses earlier in the day after the US Federal Reserve (central bank) hinted it might soon stop raising interest rates, while the Swiss National Bank and Bank of England have agreed to go ahead with the raise.

The US central bank raised its main interest rate by 25 basis points, in in line with expectations, but he softened his voice on the need for “continuous hikes” in interest rates, using the phrase “some additional (raises)”.

The dollar index, which measures the performance of the US currency against the six major currencies, rose 0.078% to 102.510, making gains on the first day after five consecutive days of losses.

The euro jumped to a seven-week high of $1.0930, before pulling back. At the end of the day, it reached $1.08480.

The Bank of England raised borrowing costs by 25 basis points on Thursday, in line with expectations.

The pound rose 0.13% against the US currency, to $1.22845.

The dollar fell against the Swiss franc after the Swiss Central Bank’s decision to raise interest rates by 50 basis points, with the latest decline being 0.19%, to 0.916 francs.