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Dollar Index Rises After Fed Announcement
Published by Jessica Weisman-Pitts
Posted on March 16, 2022
2 min readLast updated: February 8, 2026
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Published by Jessica Weisman-Pitts
Posted on March 16, 2022
2 min readLast updated: February 8, 2026
Add as preferred source on GoogleBy David Henry and Herbert Lash
NEW YORK (Reuters) – The dollar index turned up for the day on Wednesday shortly after the U.S. Federal Reserve raised interest rates by the expected quarter of a percentage point and projected its policy rate would go as high as 2% by the end of the year.
The index against major currencies rose about 0.1% on the announcement after having been down 0.2% shortly before.
Earlier in the day dollar had fallen 0.6% as the euro, a major component of the index, climbed amid signs of compromise by Russia and Ukraine in “more realistic” peace talks.
The euro was last up 0.1% to $1.0964.
Moscow said the sides were discussing a status for Ukraine similar to that of Austria or Sweden, both members of the European Union that are outside the NATO military alliance. Ukraine’s chief negotiator said it would give Kyiv binding international security guarantees to prevent future attacks.
The Russian ruble was last down 7% against the greenback.
Sterling rose 0.2% to $1.3068, after hitting a 16-month low of $1.3000 on Tuesday. Money markets expect the Bank of England to raise rates by another quarter point on Thursday.
The dollar gained 0.5% on the Japanese yen to 118.9150, the highest in more than five years.
The Bank of Japan is expected on Friday to leave ultra-loose policy settings in place.
The commodity-sensitive Australian dollar added 0.4% to $0.7228.
Bitcoin was last up 1% on the day to $39,849.
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Currency bid prices at 2:14PM (1814 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index
98.9410 98.9280 +0.03% 3.427% +99.0300 +98.3330
Euro/Dollar
$1.0964 $1.0955 +0.09% -3.55% +$1.1040 +$1.0948
Dollar/Yen
118.9150 118.2900 +0.53% +3.30% +118.9300 +118.1700
Euro/Yen
130.38 129.57 +0.63% +0.05% +130.5600 +129.5400
Dollar/Swiss
0.9453 0.9414 +0.44% +3.66% +0.9459 +0.9391
Sterling/Dollar
$1.3068 $1.3045 +0.19% -3.36% +$1.3116 +$1.3036
Dollar/Canadian
1.2753 1.2766 -0.11% +0.86% +1.2775 +1.2686
Aussie/Dollar
$0.7228 $0.7198 +0.42% -0.56% +$0.7274 +$0.7181
Euro/Swiss
1.0364 1.0309 +0.53% -0.05% +1.0376 +1.0305
Euro/Sterling
0.8389 0.8398 -0.11% -0.13% +0.8429 +0.8384
NZ
Dollar/Dollar $0.6789 $0.6770 +0.37% -0.72% +$0.6827 +$0.6743
Dollar/Norway
8.9685 9.0145 -0.60% +1.71% +9.0090 +8.8720
Euro/Norway
9.8352 9.8725 -0.38% -1.77% +9.8809 +9.7780
Dollar/Sweden
9.5063 9.6043 -0.97% +5.41% +9.6338 +9.4163
Euro/Sweden
10.4237 10.5256 -0.97% +1.85% +10.5464 +10.3913
(Reporting by Joice Alves; Editing by Elaine Hardcastle, Kirsten Donovan, Jonathan Oatis, William Maclean)
The dollar index measures the value of the U.S. dollar against a basket of foreign currencies, indicating its strength or weakness in the global market.
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve economic objectives.
Foreign exchange, or forex, is the market where currencies are traded, allowing for the exchange of one currency for another at current or determined prices.
An interest rate is the amount charged by a lender to a borrower for the use of assets, typically expressed as a percentage of the principal.
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