(Adds broader market moves, context)
By Kate Duguid
NEW YORK, July 31 (Reuters) - The U.S. dollar index jumped on Wednesday by 0.23% to 98.272 after the Federal Reserve cut interest rates by 25 basis points for the first time since 2008.
Against the euro the dollar rose as high as $1.086, its strongest level since May 2017, as traders anticipated that U.S. assets would benefit if global central banks follow the Fed in cutting rates. The market moves were nevertheless relatively muted as the decision came in as expected.
Policymakers moved the U.S. central bank’s benchmark overnight lending rate to a target range of 2.00% to 2.25%, citing concerns about the global economy and muted U.S. inflation, and signaled a readiness to lower borrowing costs further if needed. (Reporting by Kate Duguid in New York Editing by Marguerita Choy and Matthew Lewis)