US dollar falls and Euro gains after interest rate hike

The US Federal Reserve raised interest rates by 0.75% for a second consecutive time yesterday to try to rein in inflation

The euro recouped nearly all of the prior session's decline following the announcement and comments from Federal Reserve chair Jerome Powell, but fears of a European recession remain high.

The US dollar fell on Wednesday against a basket of major currencies after the US Federal Reserve raised interest rates by 75 basis points, as was widely anticipated.

The US central bank raised rates by three-quarters of a percentage point for the second straight meeting as it attempts to rein in inflation, but noted that while the labour market remains strong, other economic indicators have softened.