The US Dollar Surges After Fed Speeds Taper

The U.S. dollar strengthened versus major rivals Wednesday after the Federal Reserve, as expected, moved to accelerate the wind-down of its monthly bond purchases, putting them on track to finish by March.

The Fed’s move is also seen clearing the way for rate increases, with policy makers penciling in three hikes by the end of 2022, according what is called “dot plot”.

The Euro was down 0.2% versus the dollar at $1.1235, after trading around $1.1259 ahead of the policy announcement.

The American currency traded at 114.19 Japanese yen, up 0.4% on the day and compared with 113.91 yen ahead of the statement.

The market reaction after the FOMC decision has seen the dollar mostly higher but also with mixed levels against some currencies. Stocks are higher, treasury yields are higher and crude oil is higher.