The Federal Reserve has unanimously raised interest rates by 25 basis points, accompanied by hawkish guidance that signals at least one more hike in 2026 and possible tightening in 2027, according to FX Street (HSBC). This move has reinforced support for the US Dollar, bolstering its position against major currencies.
Meanwhile, the British Pound weakened against the Dollar, with the GBP/USD pair rebounding slightly from the 1.1335 level—its lowest since July 30—but still attracting fresh selling pressure, FX Street reported. Investing.com Forex noted that the Pound edged lower as oil prices and expectations of further Fed hikes continued to underpin the Dollar's strength.
For Japanese investors, these developments highlight the importance of monitoring US monetary policy shifts, as the Dollar’s resilience could impact FX and equity markets in Japan, especially in sectors sensitive to currency fluctuations and global interest rate trends.