Dollar Rises In Step With Fed Action

The dollar rallied Tuesday after the Federal Reserve raised interest rates for the first time in more than two years, a move seen by many currency traders as the first in a series of rate increases.

The prospect of rising rates in the United States, combined with the persistently uncertain outlook for rates in Japan and Germany, emboldened traders to buy dollars.

“There seems to be at least one other rate hike down the pike, and I think that’s good for the dollar,” said Bob Near, vice president of foreign-exchange trading at the Bank of New York.

Exchange Currency in Dollars Dollar in foreign currency Canada .7275 1.3779 France .1753 5.7045 Germany .5912 1.6914 Great Britain 1.6184 .6179 Italy .000591 1693.25 Japan .008081 123.75 Mexico .126743 7.8900