The latest decision by the Federal Reserve (Fed) has propelled the US currency king dollar to its latest 20-year high against major rivals.
Revealing again the results announced by the Fed earlier this morning, the central bank has decided to increase the interest rate by 75 basis points to the target range of 3%-3.25%.
In addition, Chairman Jerome Powell also repeated his previous statement to continue raising interest rates in an effort to lower inflation back to the central bank's target of 2%.
With no cuts expected until 2024, it gives an indication that interest rates will remain high for much longer.
Following that, the dollar index, which measures the greenback's strength against a basket of major currencies, surged as high as 111.72 before easing slightly to 111.65 in the Asian session.
Following the strengthening of the US dollar, most major currencies plunged lower which was also weighed down by new risks triggered by Russian President Vladimir Putin, where an additional 300,000 citizens have been called up to serve in Ukraine.
The euro slipped to its lowest level since October 2002, trading bleakly around 0.9810 against the US dollar.
The pound also sank to a new 37-year low as investors awaited the Bank of England's (BOE) policy meeting today (Thursday).
Meanwhile, risk sentiment capped losses in the safe-haven yen which traded little changed ahead of the Bank of Japan (BOJ) meeting in the Asian session.
Also in focus today is the meeting of the Swiss National Bank (SNB), which saw the swiss franc trade little changed.
Meanwhile, the Aussie and New Zealand dollars weakened to 2-and-a-half-year lows, while the Canadian dollar traded bleakly at a 2-year low.
