By David Henry and Herbert Lash
NEW YORK, March 16 (Reuters) – The dollar index rose on Wednesday, after the U.S. Federal Reserve raised interest rates by an expected quarter percentage point and projected its policy rate to hit 2% by the end of anus.
* The index against major currencies gained 0.1% after the announcement, after being down 0.2% shortly before.
* Earlier in the day, the dollar was down 0.6%, while the euro, one of the index’s main components, rose on signs of concessions by Russia and Ukraine in “more realistic” peace talks. .
*Euro forward is 0.1% at $1.0964.
* Moscow said the sides were discussing a status for Ukraine similar to that of Austria or Sweden, both members of the European Union that are outside the NATO military alliance.
* Ukraine’s chief negotiator said he would give kyiv binding international security guarantees to prevent future attacks.
* British pound strengthens and 0.2% to $1.3068, need to have hit Tuesday and a 16 month low and $1.3000. Money markets expect the Bank of England to raise rates a further quarter point on Thursday.
* The dollar was up 0.5% against the Japanese yen at 118.9150, the highest in more than five years, as the Bank of Japan is expected to maintain ultra-loose monetary policy on Friday.
* Bitcoin advance and 1% at $39,849.
(Reporting by Joice Alves and Kevin Buckland; Editing in Spanish by Javier Leira)