Dollar extends gains after Fed forecasts rate hike

The dollar rose against most of the major currencies on Thursday, following the US Federal Reserve's decision and statements.

The US Federal Reserve decided to hold the interest rate between zero and 0.25% unchanged, and addressed the recent rise in inflation according to the recent economic data, as the Fed officials see that the rise in consumer prices is temporary.

The FOMC stated that it expects 2 interest rate hikes in 2023, and raised its forecast for US GDP growth this year to 7% from 6.5% in March.

The US Department of Labor revealed that the number of initial unemployment claims rose to a month high 412K last week from 375K, while analysts forecast 360K.

The dollar index rose against a basket of major currencies by 0.8% to 91.9 points as of 18:19 GMT, after hitting a high of 91.8 points and a low of 91.3 points.