The dollar rose after the fed’s decision to raise rates

Moscow. December 17. The US dollar on Thursday, going up in pairs with the Euro and other major currencies after the Federal reserve’s decision about raising the cost of lending, Bloomberg reported. Strategists at JPMorgan and Goldman Sachs recommended buying the dollar.

Euro by 9:25 GMT cost $1,0859 compared to $1,0912 on the closing of the previous session, the dollar strengthened by 0.2%.

The dollar against the yen rose during the session on Thursday to 121,37 122,21 against the yen the yen the day before. Euro in pair with the Japanese national currency has depreciated with the yen 133,36 to 132,88.

The Bloomberg dollar index grows on Thursday the 6th session in a row.

Following the meeting of the Federal open market Committee (FOMC) on December 15-16, the target range of the basic interest rate was raised for the first time since June 2006, by 25 basis points to 0.25 to 0.5 percent, in line with market expectations. The decision was taken unanimously.
To this basic rate remained at an unprecedented low of 0-0. 25% in the past seven years, since December 2008. In 2008, the rate dropped 7 times.

“The decision of the FOMC and a strong emphasis on the gradual normalization of monetary policy the fed Chairman at the subsequent press conference fully correspond to what was expected by the markets. Very moderate reaction of the currency and bond markets is the best evidence of this”, – said the head of investment strategy “VTB the Capital” Alexey Zabotkin.

At the same time, according to Zabotkina, market expectations for 2016 assume a significantly more restrained pace of interest rate than average expectations of FOMC members – 50 basis points (b.n.) vs 100 (b.p.).

“So the intrigue around a path to normalize monetary policy of the USA is far from complete and will remain a significant market factor for 2016”, – the expert believes.