The dollar dropped on Thursday after the Federal Reserve, as expected by some, made what is believed to be the last interest rate hike, shifting market focus to the European Central Bank's interest rate decision later today. While Fed Chair Jerome Powell left the door open for another increase in September, traders ruled it out, leading to a decline in the dollar during Asian trading.
The New Zealand dollar rose 0.8% to $0.6259 in the latest trades, having earlier climbed more than 1% to a one-week high of $0.6274. The Australian dollar also jumped nearly 1% to a one-week high of $0.68195.
The dollar index fell 0.3% to 100.81, while the British pound touched a one-week high of $1.29735 earlier in the session. In the latest trades, the pound rose 0.19% to $1.2964. The euro increased 0.18% to $1.11035. The Japanese yen gained nearly 0.3% against the U.S. dollar to 139.84 in the latest trades.
In contrast to the dollar's decline, the yuan strengthened in both domestic and foreign markets, rising nearly 0.5% to 7.1170 per dollar in offshore trading, marking its strongest level since mid-June.
