The Greenback edged higher on Wednesday after the U.S. Federal Reserve voted unanimously and raised interest rates as expected for the eighth time. Fed policymakers lifted the overnight cash rate by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent whilst flagging more rate hikes in December, while three more are foreseen for next 2019. U.S. Federal Reserve Chairman Jerome Powell said at a press conference that the 'accommodative' era is over.
China also announced overnight will cut import tariffs on goods (1,585 products) including machinery, paper, textiles and construction materials from Nov. 1, in a move that would lower costs for consumers and companies as a trade war with the U.S. deepens.
In afternoon trading, the dollar index, which measures the U.S. unit against six major currencies, was up 0.1 percent at 94.179. The S&P 500 fell 0.3 percent, with the bulk of losses coming in the final 20 minutes of trading.