Dollar Hits One-Year High as Fed Signals More Rate Hikes

The U.S. dollar index climbed to a one-year high on Thursday. This came after the Federal Reserve adopted a more hawkish stance. Investors now expect further interest-rate hikes this year.

The stronger dollar pushed the Japanese yen to its weakest level in two years. Japanese officials have issued renewed warnings about excessive currency volatility. The Fed left its benchmark interest rate unchanged at its latest meeting.