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U.S. dollar falls despite Fed rate hike
Last Updated: 2018-06-14 10:44 | Xinhua
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The U.S. dollar index decreased against most other major currencies in late trading on Wednesday, even though the Federal Reserve raised short-term interest rates by a quarter of a percentage point.

"In view of realized and expected labor market conditions and inflation, the (Federal Open Market) Committee decided to raise the target range for the federal funds rate to 1-3/4 to 2 percent," the central bank said in a statement on Wednesday after concluding a two-day meeting.

The Fed said the U.S. labor market has "continued to strengthen" and economic activity has been "rising at a solid rate," with household spending picking up and business fixed investment growing strongly.

The Fed also said both overall inflation and so-called core inflation for items other than food and energy "have moved close to 2 percent," suggesting that Fed officials are getting increasingly confident about inflation to reach its 2-percent target.

Analysts said traders are turning their focus to Thursday's policy update of the European Central Bank, during which it could announce the end of its quantitative easing program.

On the economic front, the Labor Department said Wednesday Producer Price Index for final demand rose 0.5 percent in May on a seasonally adjusted basis, largely boosted by gasoline price increase. In the 12 months through May, the index increased 3.1 percent, the largest 12-month increase since January 2012.

The dollar index, which measures the greenback against six major peers, was down 0.16 percent at 93.670 in late trading.

In late New York trading, the euro was up to 1.1773 dollars from 1.1748 dollars in the previous session, and the British pound increased to 1.3380 dollars from 1.3375 U.S. dollars in the previous session. The Australian dollar decreased to 0.7550 dollar from 0.7572 dollar.

The U.S. dollar bought 110.52 Japanese yen, higher than 110.35 Japanese yen of the previous session. The U.S. dollar was down to 0.9859 Swiss franc from 0.9862 Swiss franc, and it fell to 1.3000 Canadian dollars from 1.3018 Canadian dollars. Enditem

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