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The dollar jumped to a multi-week high against major currencies on Thursday, supported by expectations of bigger and faster interest rate hikes in the coming months.
During the trading session in London, the dollar index consolidated at its highest level since mid-December, while the euro stumbled around a two-month low of $1.11930. The dollar also hit a more than one-year high against the New Zealand dollar and a seven-week high against the Australian dollar.
The dollar rose against emerging market currencies as money markets moved quickly with an attempt to absorb the Federal Reserve (the US central bank) raising interest rates by up to five times this year.
The dollar rose 0.7 percent against the Japanese yen, its highest level in more than two months, while Treasury yields rose and stock markets gained support from expectations of a rate hike.
The dollar index was last trading at 96.825, consolidating near its highest level since mid-December.
The risk-sensitive Australian dollar was last down 0.5% at $0.7077, after falling to $0.7064 earlier in the session.
The New Zealand dollar fell 0.7 percent to $0.6597, close to its lowest level in nearly 15 months.
The sterling fell to its lowest level in a month, recording $1.3407, and fell in its latest trading by 0.4 percent.
The yuan is heading for its biggest daily decline in more than a month in local transactions and was the last trading at 6.3632 against the dollar.
As for cryptocurrencies, they held on to most of their gains in the wake of the US central bank meeting, although Bitcoin fell by two percent in its latest transactions, and recorded 36,049 dollars.
