The U.S. dollar rose with the Federal Reserve announcement that it would raise the emergency loans interest rate up to 0.75 percent from its previously held level of 0.5 percent. Analaysts and investors both struggled to decipher whether the move would be positive or negative for the market, though it ultimately had a favorable affect. The U.S. central bank emphasized the decision, which took effect today, was a sign of confidence in the market rather than another obstacle to overcome on the road back to recovery.
For the time being the key interest rate should remain at its present levels, hovering near zero. Investors appeared comforted by both the change and the reassurance of maintained lower interest rates, prompting many investors toward the greenback.
The dollar met nine-month highs against the euro and its best levels in a month against the Japanese yen, as investors felt a renewed faith in the currency.
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