Dollar hits 7-month high vs. yen

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NEW YORK (CNNMoney.com) -- The dollar hit a seven-month high against the yen Wednesday and gained against the euro after the Federal Reserve eased some concerns about the U.S. economy.

The dollar climbed as high as ¥109.56 - a level not reached since Jan. 9, when it hit ¥110.13, according to Antonio Sousa, chief strategist at DailyFX.com.

The greenback also rose against the 15-nation euro, which fell to $1.542 from $1.5456 late Tuesday. The last time the euro was this low was June 13, when it tumbled to $1.5303, said Sousa.

Optimism: Investors were upbeat a day after the Fed left rates unchanged at 2%, as expected, and indicated it would hold rates steady for the next several months.

The central bank said economic risks remained. However the Fed's statement presented those risks in a more optimistic light, according to Dustin Reid, senior currency strategist with ABN AMRO.

"There's not as much concern over growth slowdown," said Reid, adding there was a boost in "feel-good sentiment" resulting from the Fed's announcement.

Rate decisions in Europe: The dollar's gains against the euro were more modest ahead of rate decisions from the European Central Bank and Bank of England, said Kevin Chau, senior currency analyst with IDEAGlobal in New York.

The ECB and the Bank of England are expected to hold rates steady Thursday, which could send the dollar lower against the euro and the British pound.

Oil: Over the past several weeks, the dollar has been gaining strength as the prices of oil and other commodities have fallen.

Commodities, particularly oil, often are bought as a hedge against inflation. But concerns that high energy prices are cutting into demand have triggered a selloff in commodities, and some of that investment money has flowed back to the dollar.

Oil prices moved off their highs Wednesday after a government report showed a surprise increase in crude inventories last week. Crude futures fell more than a dollar to $118 a barrel.