Dollar hits one-month high as traders eye Fed rates liftoff

After the Federal Reserve set the stage for rate hikes next year, the dollar rose to its highest level in a month on Thursday, pushing the euro towards major support levels.

The dollar hit its highest in a month on Thursday and pressed the euro towards major support levels, after the Federal Reserve set the stage for rate hikes next year -- far sooner than its developed market peers are expected to move.

The US central bank left policy settings unchanged overnight and, as expected, did not announce the beginning of asset purchase tapering. But the Federal Reserve said "a moderation in the pace of asset purchases may soon be warranted" and Fed Chair Jerome Powell said board members believed tapering could conclude around mid-2022, opening the way for rate hikes after that.