SynopsisThe US dollar rises against major currencies after the Federal Reserve hikes interest rates and signals further tightening to tackle inflation. The dollar index reaches a nearly five-week high, while traders see an 80% chance of a Bank of Japan rate hike on Friday.

Bitcoin remains steady after Tuesday's sharp fall. ReutersThe dollar rose against a basket of currencies on Wednesday after the Federal Reserve raised interest rates and flagged further increases in borrowing costs in coming months.

S. central bank chief Kevin Warsh joining a unanimous decision that effectively acknowledges the Trump administration's inability so far to control inflation.

Warsh apparently again did not submit a rate projection. 25% range by the end of this year and ending 2027 at the same level."

Today's decisive hike-supported by all FOMC members and paired with an upgrade in the 'dot plot' summary of economic projections-should go a long way toward restoring confidence in the Fed's commitment to fighting inflation, and help remove a major headwind keeping the dollar restrained," said Karl Schamotta, chief market strategist at Corpay in Toronto. 961, the highest in nearly five weeks."

Today's unanimous vote is the clearest signal yet that the Warsh Fed is unified, data-driven, and willing to act," said David Krakauer, vice president of portfolio management at Mercer Advisors in San Diego. 1502.

34155. British inflation accelerated to a five-month high in August, a day before the Bank of England is expected to leave rates steady.

49 yen. , and speculation that Japanese investors are repatriating capital, has floundered in recent sessions as the dollar has firmed.

Traders see an 80% chance that the Bank of Japan will hike rates on Friday, LSEG data show, and have priced in two 25-basis-point hikes by the end of January." The yen's path will continue to depend heavily on interest rate differentials," David A.

Meier, economist at Julius Baer, said in a research note." We recently revised our USD/JPY forecasts to 155, reflecting some scepticism that the central bank can ultimately satisfy the pace of tightening currently priced in by markets," he added.

71 to the dollar, but the currency is holding its gains despite a widening gap between low Chinese yields and rates elsewhere. S.