Sharjah24 – Reuters: The dollar was nursing its sharpest fall in more than a month on Thursday after the U.S. Federal Reserve raised its benchmark interest rate by 50 basis points but poured cold water on the idea that even larger rises could lie ahead.

The U.S dollar index =USD toppled from a five-year high and fell 0.9% overnight to 102.450. Antipodean currencies surged, especially the Aussie dollar, which enjoyed its biggest one-day percentage gain in over a decade as investors dialled back bets on the Fed staying ahead of Australia's central bank.

The euro EUR=EBS rose nearly 1% and last bought $1.0606. The yen JPY=EBS fought its way back to the stronger side of 130 per dollar for the first time in a week, last trading at 129.26.

Sterling GBP=D3 rose more than 1% to $1.2605 and swaps markets are fully pricing a 25 bp hike from the Bank of England later in the day. BOEWATCHRead full story

The Fed hike was the largest since 2000 as policymakers urgently tried to tamp down inflation. But at the press conference afterwards Chair Jerome Powell said Fed members aren't actively considering 75-basis-point moves in the future.

Fed funds futures 0#FF: rallied to take some of the edge from markets' aggressive outlook on U.S. rates, though a further 200 bps of hikes remain priced in for the rest of the year.

The Aussie dollar's 2.2% leap was its largest since late 2011 and followed a surprisingly hawkish turn from the Reserve Bank of Australia, which began its cycle of interest rate rises with a larger-than-expected 25 bp hike on Tuesday. AUD/

The Aussie AUD=D3 was last at $0.7236, edging a little lower from its overnight peak of $0.7265. The New Zealand dollar NZD=D3 jumped 1.7%, its largest one-day rise in two years, to sit back above $0.65 at $0.6537.

The dollar's losses gave support to cryptocurrencies, too. Bitcoin BTC=BTSP had its best day in more than five weeks, rising 5% to sit just below $40,000.

Trade was thinned in the Asia session by a public holiday in Japan.