Summary The US dollar surged Wednesday on Fed hint of higher interest rates.
NEW YORK (AFP) - The US dollar surged Wednesday after Federal Reserve Chair Janet Yellen sketched out a rough time-table for when the central bank could raise benchmark interest rates.
At 2100 GMT Wednesday, the euro fell to $1.3827 from $1.3932 late Tuesday.
The dollar bought 102.32 Japanese yen, up from 101.42.
The euro advanced to 141.53 yen from 141.29.
The Fed, as expected, decided to continue to trim back its stimulus program.
The central bank revised its forward guidance on interest rates, dropping a threshold of 6.5 percent unemployment while adding that it still expects very low rates for a "considerable time" after the bond-buying program ends, according to a communique.
But a remark from Yellen during a news conference sent US stocks lower while fortifying the dollar.
Yellen said the time-frame for raising interest rates could be "on the order of around six months" after the stimulus ends, expected at its current taper pace by year-end.
The Fed s actions "left investors with a very clear message," said Kathy Lien, managing director at BK Asset Management. "Today, Janet Yellen began to set expectations for tightening."
"The fact that Janet Yellen is talking about rate hikes at all in her first meeting as Federal Reserve Chair is extremely bullish for the dollar and providing specifics on timing gives investors a target to look forward to," Lien added.
Among other currencies, the British pound dipped to $1.6536 from $1.6587.
The dollar advanced to 0.8807 Swiss franc from 0.8732.
