The US dollar clearly declined immediately after the Federal Reserve's interest rate decision was issued a few minutes ago, as the Federal Reserve's Monetary Policy Committee decided today, Wednesday, after concluding its meeting, to raise the US interest rate by 0.75% for the fourth consecutive month in an attempt to control high inflation, in line with expectations which indicated an interest rate hike of 0.75% this month, raising the interest rate to 4.00%.

Immediately after the decision was issued, the dollar index, which measures the performance of the US currency against about six major currencies, fell by 0.84% and recorded about 110.64 points, affected by the US interest rate statement that followed the issuance of the 75 basis points rate hike decision. The EUR/USD pair also rose clearly near the level of 0.9942, benefiting from the Federal Reserve decisions.

The interest rate statement included some hints about the Federal Reserve slowing the pace of interest rate hikes during the bank's upcoming meetings, which clearly weakened the US dollar against other currencies, as the Monetary Policy Committee expected that the continued increases in the target range would be appropriate to reach a monetary policy stance sufficiently restrictive to bring inflation back to 2% over time.

Also, the Federal Reserve indicated that when determining the pace of future increases in the target range, the bank will take into account the cumulative tightening of monetary policy, the delays with which monetary policy affects economic activity and inflation, economic and financial developments, and these points had a strong negative impact on the dollar's movements in currency markets.