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FOREX-Dollar extends rise after Fed statement, Swiss rate move

* Dollar hits 28-month high against franc after Swiss rate cut

* SNB confirms has intervened in FX markets

* Dollar gains against euro, yen after Fed (Updates prices, adds comments, changes byline, dateline; previous LONDON)

By Sam Forgione

NEW YORK, Dec 18 (Reuters) – The U.S. dollar rose against major currencies for a second straight session on Thursday after the Federal Reserve signaled it would hike rates next year and the Swiss National Bank’s statement that it would introduce negative interest rates.

The greenback hit a 28-month high against the Swiss franc at 0.9847 franc after the SNB said it would impose an interest rate of -0.25 percent on some large deposits held by investors in francs, as it seeks to discourage buying of the currency as a safe haven.

The euro hit its lowest level against the dollar since Dec. 8, at $ 1.2266, while the dollar also hit a roughly one-week high against the Japanese yen after the Fed, on Wednesday, altered a pledge to keep rates near zero for a “considerable time” in a show of confidence in the U.S. economy.

“The dollar strength today is a continuation of the Fed reaction,” said currency strategist Vassili Serebriakov of BNP Paribas in New York.

He said traders continued to digest the likelihood of a Fed interest rate hike by the middle of next year, boosting the dollar further against the euro, while the Fed’s upbeat assessment of the U.S. economy helped the dollar extend gains against the safe-haven yen.

The dollar had traded higher against the rouble earlier on Thursday, with traders attributing the recovery to Russian President Vladimir Putin offering few concrete measures at his end-of-year news conference to pull Russia out of a crisis. The dollar later lost ground in volatile trade, and was last down 0.88 percent against the rouble at 59.557 roubles.

The euro was last down 0.5 percent against the dollar at $ 1.2280, while the dollar was last up 0.83 percent against the Swiss franc at 0.9810 franc.

The dollar was up 0.46 percent against the yen at 119.19 yen after hitting a roughly one-week high of 119.30 yen.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, was last up 0.19 percent at 89.304.

On Wall Street, the benchmark S&P 500 stock index was last up 1.26 percent.

(Reporting by Sam Forgione; Editing by Meredith Mazzilli)

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