The U.S. dollar rose sharply Wednesday morning against other major currencies in European trading. Gold prices fell.
The dollar had risen in New York trading Tuesday after the Federal Reserve raised its key interest rate by a quarter-point to 2.75 percent and noted stronger inflationary pressures, which could point to further rate rises. Higher interest rates usually boost a currency by making assets denominated in that currency more attractive to investors.
The euro was quoted at $1.3045, down from $1.3280 late Tuesday.
Other dollar rates compared with late rates Tuesday included:
105.55 Japanese yen, up from 104.95;
1.1923 Swiss francs, up from 1.1749,
and 1.2114 Canadian dollars, up from 1.2001. The British pound was quoted at $1.8804, down from $1.9003.
Gold dealers in London fixed a recommended price of $427.25 bid per troy ounce at midmorning, down from $430.90 on Tuesday.
In Zurich the bid price was $427.20, down from $431.28.
Gold fell $3.70 in Hong Kong to close at $427.25.
Silver opened in London at $6.95 bid per troy ounce, down from $7.05.