Dollar rises after the Fed hikes interest rates

The dollar rose against the euro on Wednesday after the Federal Reserve raised interest rates and signaled further increases in borrowing costs in the coming months.

The euro fell 0.2% against the U.S. currency to $1.15173.

The U.S. Federal Reserve (the U.S. central bank) raised its key interest rate for the first time in more than three years on Wednesday.

The central bank increased its key rate by 25 basis points to a range of 3.75% to 4%.

The decision came as the central bank battles stubborn inflation fueled by rising energy prices. Some Wall Street analysts expect one or two additional rate hikes in the coming months.