The dollar gained against the euro on Wednesday after the U.S. FRS informed it raised interest rates.
However, it was expected by traders. "Nothing shocking. I'm a little surprised that there is any reaction at all," said Jason Bonanca, vice president and foreign exchange analyst at Credit Suisse First Boston in New York.
He added that there's no suggestion that is going to pause. It's going to be pretty much 25 (basis points) a clip until further notice.
By midafternoon in New York, the euro fell to $1.2878, down 0.1 percent, after hitting a record high of $1.3005 earlier in the session.
Analysts said that even with the rate hike, sentiment on the dollar remains bearish given deep-seated concerns over the large U.S. current account and budget deficits.
