US Federal Reserve raises rates for first time in almost a decade

The dollar was little changed against the euro after the Federal Reserve last night raised interest rates for the first time in almost a decade, while signalling the central bank won’t rush to reduce monetary stimulus.

The dollar initially climbed after the Federal Open Market Committee said that the pace of subsequent increases will be “gradual” and in line with previous projections.

However, some of the biggest banks trading in the $5.3tn-a-day (€4.82tn) currency market are predicting further gains for the dollar next year as the Fed tightens policy.