tokyo june 15 reuters  the us dollar rallied in asian trading on thursday after the federal reserve signalled rate hikes later in the year while chinas and new zealands currencies fell on signs of weakness in those economies the markets attention is now turning to other central bank decisions late this week the dollar index rose 028 to 10321  recovering from a fourweek low of 10266 on wednesday after the fed held interest rates steady but signalled that borrowing costs would increase by another 50 basis points bps by enddecember the european central bank announces its next rate decision on thursday with markets pricing in a 25 basispoint hike and another in july before a pause for the rest of the year the bank of japan follows on friday when it is expected to maintain its ultradovish stance and yield curve control settings in light of what the fed has announced its a hawkish pause said bank of singapore currency strategist sim moh siong the message here is that the fed is tightening and this is why i think the dollar itself could stay supported in the near term the euro lost 012 to 10818 but against japans currency it surged 035 to 15226 yen the yen also weakened against the dollar falling 046 to 140735 the kiwi dollar sank 068 to 06170 after data showed new zealands economy shrank into a technical recession in the first quarter chinas yuan slid 01 and touched 71872 per dollar the weakest since november after the peoples bank of china pboc cut the borrowing cost of its mediumterm policy loans for the first time in 10 months that followed a reduction in the pbocs shortterm policy lending rate on tuesday following the rate cut from earlier this week theres a lot of expectation for more wide ranging stimulus to shore up the economy said bank of singapores siong