Dollar breaks $1.30 barrier against euro

THE euro’s alarming rise against the dollar continued yesterday with the single currency breaching the psychologically important barrier of $1.30 for the first time.

The rise came as the Federal Reserve raised US interest rates by a quarter percentage point for a fourth time this year, citing brightening job markets that likely mean more increases lie ahead.

The unanimous decision by the US central bank’s policy-setting Federal Open Market Committee moves the benchmark federal funds rate - which affects credit costs throughout the economy - to 2% from 1.75%.