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The U.S. dollar strengthened on Thursday after the U.S. Federal Reserve announced a plan to begin shrinking its balance sheet and also indicated one more rate hike, likely in December.
The dollar index versus a basket of six major currencies stood at 92.50.
The greenback rose to 112.595 yen, a two-month peak, from almost 111.30.
The euro fell to $1.1883 from above $1.20 ahead of the Fed's policy announcement.
The increase in U.S. Treasury yields raised the dollar's appeal.
The yield on two-year U.S. Treasury notes rose to 1.451 percent, its highest level since November 2008 late on Wednesday.
The Fed indicated that it still sees one more interest rate hike by the end of the year, despite a recent bout of low inflation, but pulled down its long-term interest rate forecasts.
Fed fund rate futures are currently implying around a 65 percent likelihood of a rate hike by December compared to almost 50 percent ahead of the meeting. Markets expect the U.S. central bank's move to coincide with revisions of its economic projections.