U.S. dollar rallies after Fed decision

The U.S. dollar rose against other major currencies on Wednesday after the Federal Reserve decided to raise interest rates for the first time this year.

"In view of realized and expected labor market conditions and inflations, the (Federal Reserve Market) Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4 percent," said the Fed in a statement after concluding a two-day policy meeting.

The Fed released its updated economic projections which indicate that the central bank forecasts three rate hikes next year, which in its September projections, Fed officials expected only two rate hikes in 2017.

Analysts said that with a rate-hike largely priced in before Wednesday, the greenback was supported by the speculations of more rate-hikes next year.

The dollar index, which tracks the greenback against six major peers, was up 0.51 percent at 101.590 in late trading.

In late New York trading, the euro fell to 1.0578 dollars from 1.0619 dollars, and the British pound declined to 1.2616 dollars from 1.2668 dollars. The Australian dollar decreased to 0.7451 dollars from 0.7495 dollars.

The dollar bought 116.20 Japanese yen, higher than 115.28 yen in the previous session. The dollar inched up to 1.0172 Swiss francs from 1.0130 Swiss francs, and it rose to 1.3239 Canadian dollars from 1.3123 Canadian dollars. Enditem