The Federal Reserve delivered a 25-basis-point increase in its benchmark interest rate on Wednesday, lifting the U.S. Dollar Index 0.67% to 100.21, its highest level since July 31. Investors added exposure to the greenback as higher U.S. rates improve the relative yield on dollar assets, prompting a swift rotation into the currency. The index now trades above its 20-day, 50-day, 100-day and 200-day moving averages, confirming a broad technical uptrend. The Fed's latest tightening step continues its effort to keep inflation in check while supporting a still-resilient labor market, and market participants read the decision as a signal that policy will stay restrictive for longer than some had hoped. Traders are now watching whether the breakout can hold, with sustained buying likely to keep pressure on foreign-exchange pairs and support dollar-denominated assets.
HSBC Holdings PLCThe Fed raised its benchmark rate by 25 basis points, lifting the effective federal funds rate.
Higher Fed policy rate and restrictive-for-longer signal push Treasury yields up (bond prices down).
