* Fed cuts rates, but gives uncertain outlook * Fed reduces rates on excess reserves * Trump says Fed has "no guts, no sense, no vision" * Dollar holds near 7-week high vs yen after Fed decision * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh (Adds comment, Trump's remarks to Fed easing; updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, Sept 18 (Reuters) - The dollar hit a seven-week high against the yen and a three-month peak versus the Swiss franc on Wednesday after the Federal Reserve cut interest rates by a quarter of a percentage point, as expected, but gave an uncertain outlook on future easing and sounded less bleak about the U.S. economy. The dollar rose in seven of the last eight sessions against the yen, while touching the day's peaks versus the euro. In cutting interest rates by 25 basis points for the second time this year, the Fed gave a nod to ongoing global risks and "weakened" business investment and exports. But new projections showed policymakers at the median expected rates to stay within the new range through 2020. However, in a sign of ongoing divisions within the Fed, seven of 17 policymakers projected one more quarter-point rate cut in 2019. "It is perhaps a little more hawkish than what the market was hoping for. I think it's an acknowledgement that there is a range of opinion within the policymaking apparatus here," said Tim Horan, chief investment officer, at Chilton Trust in New York. "If you look at our own U.S. numbers, what stands out is that inflation has been moving up and that's slightly at odds with the stronger dollar that we've had." In response to the Fed's action, President Donald Trump blasted the Fed, saying the U.S. central bank and its Chair, Jerome Powell, had "No 'guts,' no sense, no vision!" In late afternoon trading, the dollar rose 0.3% to 108.42 yen, hitting a seven-week high of 108.43. The dollar index, tracking the unit against a basket of other currencies, was up 0.3% at 98.56, advancing against the Swiss franc to 0.9981 franc. The euro fell 0.3% against the dollar to $1.1031. "The tone of the Fed's new forecasts remained largely sanguine despite the global risks," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. "Consequently, the dollar isn't likely to stray far from recent highs." Aside from cutting interest rates, the Fed changed two key rates used to manage its main policy lever. It lowered the interest it pays on excess bank reserves (IOER) by 30 basis points, to 1.80%. The rate now sits 20 basis points below the top of the target range, compared to 15 basis points previously. The Fed also set its offering rate for any necessary operations in the $2.2 trillion repurchase agreement, or repo, market, at 1.70%, five basis points below the bottom of the new target range for the policy rate. The changes came after turmoil this week in funding markets briefly pushed the overnight bank-to-bank lending rates above the U.S. central bank's target range. ======================================================== Currency bid prices at 3:24PM (1924 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1016 $1.1071 -0.50% -3.95% +1.1075 +1.1015 Dollar/Yen JPY= 108.4500 108.1200 +0.31% -1.65% +108.4600 +108.0900 Euro/Yen EURJPY= 119.48 119.69 -0.18% -5.34% +119.8100 +119.4200 Dollar/Swiss CHF= 0.9980 0.9930 +0.50% +1.69% +0.9983 +0.9927 Sterling/Dollar GBP= 1.2479 1.2500 -0.17% -2.18% +1.2510 +1.2440 Dollar/Canadian CAD= 1.3297 1.3241 +0.42% -2.49% +1.3309 +1.3240 Australian/Doll AUD= 0.6818 0.6864 -0.67% -3.28% +0.6869 +0.6813 ar Euro/Swiss EURCHF= 1.0998 1.0994 +0.04% -2.27% +1.1019 +1.0985 Euro/Sterling EURGBP= 0.8828 0.8855 -0.30% -1.74% +0.8880 +0.8825 NZ NZD= 0.6308 0.6356 -0.76% -6.09% +0.6362 +0.6301 Dollar/Dollar Dollar/Norway NOK= 8.9595 8.9210 +0.43% +3.71% +8.9794 +8.9230 Euro/Norway EURNOK= 9.8737 9.8792 -0.06% -0.33% +9.9062 +9.8678 Dollar/Sweden SEK= 9.7391 9.6693 +0.22% +8.65% +9.7450 +9.6669 Euro/Sweden EURSEK= 10.7309 10.7078 +0.22% +4.55% +10.7431 +10.7040 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Richard Leong and Kate Duguid; Editing by David Gregorio and Nick Zieminski)
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