The dollar was set to close at its highest level in four years against major counterparts following the raise by the Federal Reserve officials of their target-rate forecast.
The yen hit a six-year low prior to a speech by the Bank of Japan governor. The dollar climbed to a six-month high against Australia's dollar after Fed policy makers raised their median estimate for the key rate to 1.375 percent at the end of 2015 compared to June's 1.125 percent expectation. The pound stayed higher while later Wednesday Scotland votes on independence. The euro traded lower as the European Central Bank got ready to allot the first funds under its targeted longer-term refinancing operations, according to Bloomberg.
The dollar's hawkish interpretation came even though the Fed stuck to language that hinted that rate hikes would not be implemented for a "considerable time." An unexpectedly soft reading on U.S. inflation overshadowed the reaction to the Fed meeting, despite the fact that Fed Chair Janet Yellen highlighted the fact that policy would be highly dependent on the economy's performance over the course of the next few months to come, reports Reuters.
The Bloomberg Dollar Spot Index traded higher 0.1 percent to 1,054.98 in Tokyo, set to reach the highest level since June 2010.
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