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The US dollar is on fire

Dec 15, 2016, 18:06 IST

Markets Insider

The dollar keeps climbing in the aftermath of the Federal Reserve's decision to raise rates for the second time this decade.

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The US dollar index is up by 0.8% at 103.01 as of 7:21 a.m. ET - an almost 14-year high.

On Wednesday, the Federal Reserve decided to raise its benchmark interest rate by 25 basis points to a range of 0.50% to 0.75%, as virtually all market watchers were expecting.

In its unanimous decision, the Federal Open Market Committee (FOMC) noted improvement in the jobs market and the drop in the unemployment rate to a pre-recession low.

Additionally, the committee raised its expectation for the number of hikes in 2017, up to three from the prior forecast of two.

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The dollar first started strengthening against most major and emerging market currencies after Donald Trump's election in mid-November.

NOW WATCH: Watch Yellen explain why the Federal Reserve decides to raise rates

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