Dollar Strengthens and Gold Sinks on the Fed's Hawkish Policy Update

The dollar index (DXY00) rose 0.54% to a 13-month high, supported by the FOMC’s projection of higher interest rates later this year. Weekly jobless claims also helped the dollar, reinforcing the view that US policy remains relatively hawkish versus peers. The move has broad market relevance because it reflects both rate expectations and strong FX momentum.

Analysis

The dollar index (DXY00) rose 0.54% to a 13-month high, supported by the FOMC’s projection of higher interest rates later this year. Weekly jobless claims also helped the dollar, reinforcing the view that US policy remains relatively hawkish versus peers. The move has broad market relevance because it reflects both rate expectations and strong FX momentum.