The US dollar escalated and is now on the highest rate for the past 2 weeks after the interest rate hike was announced by the US Federal Reserve. Indications for more interest rate increases in 2016 were also made.
The US Fed increased the interest rate by a quarter of a percentage point on Wednesday. Janet Yellen, the US Fed chair, announced that there will be tightening but on a gradual basis. The median projected target for next year is 1.375%. There is a possibility of a quarter-point interest rate hike next year.
The Norwegian crown increased for more than 1% in contrast with the euro. This happened after the country’s central bank made a decision to lessen interest rates even if there is a decrease in oil prices that is not favourable to the country’s economic growth.
The yuan was at its lowest for a period of 4 months in offshore trading. It was below 0.6% against the USD after the Chinese central bank lowered the currency. The onshore trading did not do well too and hit a 4 ½ year low after the 10th day of trading. This is the worst record so far.