Investing.com - The dollar rose against the euro and the pound, but declined against the yen on Wednesday as forex traders reacted to the Fed's interest rate hike of 0.25% and plans for additional rate increases next year.
The exchange rate for the EUR/USD settled lower today at 1.0521.
The exchange rate for the GBP/USD was down and settled at 1.255.
The rate for the pairing of the USD/JPY was, however, more than 1%, at 117.28.
The Fed's unexpectedly hawkish tone -- it announced three likely rate increases next year, in addition to today's boost -- sent the dollar toward its highest level since 2002 against a basket of 16 currencies.
The US Dollar Index was up 0.8% to 91.12, its highest closing value in over 14 years.
Today's news sent the dollar to a 10-month-high against the Japanese yen, whilst emerging-market currencies are also being challenged.
The greenback was up 2% against the Russian ruble, 1.2% against the Korean won, and 0.7% against the Mexican peso, during intraday trading.
The Dow Jones Industrial Average late this afternoon backed away from the 20,000 level, falling below 19,750.
The S&P 500 was down even more acutely, dropping 0.6% to 2258, on intraday trading. All sectors of the index are in the red, led by the real-estate and energy sectors, two-dividend paying groups that have been favored trades in the now bygone era of historically low interest rates.