Dollar climbs in Asia after hints from Fed for further interest rate hikes

The dollar rose in Asian trade on Thursday after the Federal Reserve signaled an interest rate hike later in the year, while the currencies of China and New Zealand fell amid signs of slowing economies.

Market attention is now turning to other central banks’ decisions late this week.

The dollar index rose 0.28% to 103.21, recovering from a four-week low of 102.66 hit on Wednesday after the Federal Reserve kept interest rates unchanged, but indicated that borrowing costs would rise another 50 basis points by the end of December.

The euro fell 0.12 percent to 1.0818 dollars, but rose against the Japanese currency 0.35 percent to 152.26 yen.

The yen also fell against the dollar, as it fell 0.46 percent to 140.735.

The New Zealand dollar fell 0.68% to $0.6170 after data showed that the New Zealand economy slipped into recession in the first quarter.

The Chinese yuan fell 0.1 percent and touched 7.1872 per dollar, the weakest level since November, after the People’s Bank of China lowered the cost of borrowing for its medium-term loans for the first time in ten months.