News: FOREX-Dollar drops after Fed hikes rates as expected

(Recasts with Fed decision, adds quote, updates prices)

The dollar fell in volatile trading against a basket of currencies on Wednesday after the Federal Reserve raised its benchmark overnight interest rate by half a percentage point, the biggest jump in 22 years.

The rate increase was widely expected. The U.S. central bank set its target federal funds rate to a range between 0.75% and 1% in a unanimous decision, with further rises in borrowing costs of perhaps similar magnitude likely to follow.

The Fed also said that its $9 trillion balance sheet would be allowed to decline by $47.5 billion per month in June, July and August and the reduction would increase to as much as $95 billion per month in September.

The dollar index =USD was last at 103.20, after getting as low as 103.07 immediately after the Fed statement.

The euro EUR=EBS rose to $1.0553, after briefly reaching$1.0573.

The dollar was 129.87 against the Japanese yen JPY=EBS , after briefly dropping to 129.75.

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	Currency bid prices at 2:16PM (1816 GMT) 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	   High Bid	Low Bid 
											  Previous				   Change					
											  Session											  
 Dollar index	  =USD	   103.2000	   103.4400	-0.21%		 7.879%		+103.6000   +103.0700 
 Euro/Dollar	   EUR=EBS	$1.0553		$1.0519	 +0.34%		 -7.16%		+$1.0573	+$1.0507 
 Dollar/Yen		JPY=EBS	129.8650	   130.1300	-0.19%		 +12.82%	   +130.2000   +129.7500 
 Euro/Yen		  EURJPY=	137.07		 136.92	  +0.11%		 +5.19%		+137.2700   +136.7200 
 Dollar/Swiss	  CHF=EBS	0.9809		 0.9788	  +0.21%		 +7.54%		+0.9846	 +0.9784 
 Sterling/Dollar   GBP=D3	 $1.2507		$1.2496	 +0.10%		 -7.51%		+$1.2537	+$1.2468 
 Dollar/Canadian   CAD=D3	 1.2799		 1.2842	  -0.34%		 +1.22%		+1.2853	 +1.2787 
 Aussie/Dollar	 AUD=D3	 $0.7167		$0.7096	 +0.97%		 -1.44%		+$0.7182	+$0.7089 
 Euro/Swiss		EURCHF=	1.0351		 1.0295	  +0.54%		 -0.15%		+1.0376	 +1.0285 
 Euro/Sterling	 EURGBP=	0.8436		 0.8418	  +0.21%		 +0.44%		+0.8449	 +0.8404 
 NZ				NZD=D3	 $0.6464		$0.6436	 +0.40%		 -5.59%		+$0.6475	+$0.6423 
 Dollar/Dollar																					 

 Dollar/Norway	 NOK=D3	 9.3890		 9.4000	  -0.31%		 +6.37%		+9.4265	 +9.3650 
 Euro/Norway	   EURNOK=	9.9113		 9.8823	  +0.29%		 -1.01%		+9.9366	 +9.8673 
 Dollar/Sweden	 SEK=	   9.8506		 9.8606	  +0.18%		 +9.21%		+9.9010	 +9.8393 
 Euro/Sweden	   EURSEK=	10.3970		10.3779	 +0.18%		 +1.59%		+10.4121	+10.3750 
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World FX rates	 https://tmsnrt.rs/2RBWI5E 

WRAPUP 3-Fed hikes rates by half percentage point, starts balance sheet reduction June 1 US STOCKS-Wall Street mixed following Fed's interest hike

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