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The US dollar is on fire

Elena Holodny   

The US dollar is on fire
Stock Market1 min read

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

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.

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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