Looking for the best GBP/USD exchange rate? Click here.
Although the hike was largely priced into the market, it didn't stop the U.S. dollar gaining across the board last night, with the GBP/USD dipping from $1.2725 to $1.2520 this morning.
GBP/USD graph.
The dollar was also helped by comments from Fed Chair Janet Yellen, after she hinted the U.S. central bank could look at multiple rate hikes in 2017.
The announcement that interest rates were likely to rise another three times next year came as welcome news to investors, and immediately saw an increase in flows to the U.S, helping to drive up the value of the dollar.
Yesterday's Fed meeting was their first since Donald Trump won the U.S. presidential election, and with markets anticipating him to boost the U.S. economy by cutting taxes, deregulation and spending the Fed have decided now is the time to take some action.
Are you thinking of buying or selling dollars?
If you have a requirement to buy or sell dollars in the weeks or months and want to make sure are making the most from your transfer, contact me today for a free, no-obligation currency consultation.
As a specialist in currency exchange, I have a wide range of tools at my disposal to help protect you against adverse market movements or target a rate of exchange that might not be currently available.
For more information about how I can help or to find out what rate of exchange I can offer complete the contact form by click on the link below.
