Its big news for the US, the dollar went high up in last 14 years. On 15th December, the federal reserve of US has made an announcement of the increase in the interest rate and has also made a signal of increased interest rates very soon.
The immediate rise in the interest rates of US will eventually improve the rally of dollar in the coming year 2017. The analysts say that there will be new outcomes for the Asian companies and for the exports in US as well. It has already been figured out by WSJ Dollar Index that greenback has increased about 30% since last 3 years. The mentioned figure was increased from about 93.19 from the year 2002.
As per Alvin Tan, foreign exchange analyst, they have noticed high dollar strength which will be extended till the mid of coming year. This dollar has been rose after it was said that the target rate of federal funds will increase at a rate which can be somewhere between 50 and 75%.
The Federal reserve is expecting that the fun rates will reach to 1.4% till the end of next year and then it should reach to about 2.1% by the December of 2018 and then to 2.9% by the end of the year 2019. It means that there will be three times increase in the interest rate, which is faster than it was earlier.
There will be more effects seen in the coming years which will reflect soon.