The dollar index rose above 111.5 on Thursday, scaling its highest levels in 20 years, after the Federal Reserve delivered its third straight 75 basis point rate hike and offered a hawkish outlook for rates. Fed officials projected rates to peak at 4.6% next year with no cuts until 2024, defying market speculations that the central bank could ease policy in 2023 to manage the economy. The dollar also benefited from safe-haven flows after President Vladimir Putin announced a partial military mobilization in Russia, in a significant escalation of the conflict in Ukraine. The greenback climbed to multi-decade highs against the euro and the sterling, while hovering over two-year highs against the Australian and New Zealand dollars. Meanwhile, the yen sank to a fresh 24-year low against the dollar as the Bank of Japan maintained its ultra-loose policy, remaining an outlier among a global wave of central bank policy tightening.
