The hike comes despite several key figures coming in weaker than expected, including inflation, an drop in United States consumer prices in May and retail sales, which their biggest drop in 16 months last month. Policymakers said the economy was strengthening and that they viewed recent softness in inflation as largely transitory.
CURRENCIES: The dollar edged lower to 109.56 from 109.57 yen.
The euro was also unchanged at $1.1217, below a seven-month peak of $1.1296 scaled overnight. Gold pays its holders nothing and struggles to compete with yield-bearing assets when borrowing costs rise. They fell as low as 2.103 percent following the downbeat data, their lowest since November 10.
The U.S. central bank also gave a first clear outline of plans to shed its $4.5 trillion bond portfolio built up in three rounds of quantitative easing stimulus.
Fed Chair Janet Yellen was holding a press conference at 2:30 p.m. EDT (1830 GMT).
In her press conference after the announcement, Fed Chair Janet Yellen asserted that USA economic growth appears to have rebounded enough to justify both higher rates and a return of Fed-held assets to the wider market.
"The committee now expects to begin implementing a balance sheet normalization program this year, provided that the economy evolves broadly as anticipated".
Stupnytska added that while the Fed would be "under little pressure to tighten policy in the next few months" ultimately the tightening effect could come from the balance sheet reinvestment programme.
Australia Halts Airstrikes In Syria After Russian Military Threat
The ADF are closely monitoring the air situation in Syria, an Australian Defence spokesperson said. The agreement covers four zones in Syria where the rebels are fighting pro-government forces.
RATE HIKE: The Federal Reserve raised interest rates for the third time since December, something investors had widely expected based on the Fed's recent statements.
As per data made available, the previous rate hike by the USA central bank in May had a 0.77 per cent upward impact on the BSE Sensex, while the decision to hold rates in March was impacted by 0.64 per cent.
"In this climate, there are no incentives to buy the dollar", she said.
HONG KONG: The Hong Kong Monetary Authority raised interest rates after the Fed's move, to help keep the territory's currency at a stable rate against the US dollar.
Officials at the USA central bank also cut their inflation forecast, one of the final indicators to pick up momentum over the past few years.
The Australia dollar rose 0.2 percent to $0.7605, moving back toward its 2-1/2-month high of $0.7636 hit on Wednesday, after a better-than-forecast employment report. Thursday's fix was 87 pips, or 0.13 percent firmer than the previous fix of 6.7939.
Economist-expert Parviz Heydarov said that the USA economy is now completely out of a hard situation.
Comments