NEW YORK: The US dollar edged higher against the pound and the euro on Thursday, a day after the Federal Reserve held interest rates steady but stiffened its hawkish stance with a further rate increase projected by the end of the year.

The pound and Swiss franc tumbled on Thursday after the British and Swiss central banks kept rates unchanged, while the Japanese yen strengthened against the greenback before Friday’s Bank of Japan policy announcement.

The Fed held interest rates steady at the 5.25%-5.50% range, in line with market expectations on Wednesday, but it signalled that its officials increasingly believe hawkish policy can succeed in lowering inflation without wrecking the economy or leading to large job losses.

Along with another possible rate hike this year, the Fed’s updated projections show significantly tighter rates through 2024 than previously expected.

The pound fell to its lowest since March after the Bank of England held interest rates steady on Thursday, following a cooler-than-expected inflation report the previous day.

Thursday marked the first time since December 2021 that the BoE did not raise rates at its monetary policy meeting, a halt to a run of 14 consecutive rate hikes. The pound was 0.41% lower at $1.2293.