0113 GMT - The Fed hiking is positive for the dollar, but there may not be enough central bank policy divergence out there to move its value much higher, says Juan Perez at Monex USA. Other official decisionmakers are going to be acting in tandem with the Fed, he says, convinced that inflationary pressures are inescapable and necessitate higher rates, especially given the effects of the Middle East war on energy. While Fed Chair Warsh seems more inclined to "laissez-faire" approaches, he still has domestic opposition in the form of Treasury intervention to provide liquidity for bond markets, as well as a determination to intervene in FX, particularly to aid the yen, Perez reckons. The dollar is flat at 156.19 yen.
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