The dollar was the chief beneficiary of a sharp spike in risk aversion yesterday as the markets digested Wednesday's policy statement from the Federal Reserve.

Adding to the uncertain mood were fresh concerns about the eurozone periphery following another downgrade to Greece's sovereign debt rating.

The US currency climbed to a three-month high against the euro and gained ground against most other leading currencies after the US central bank offered a more upbeat assessment of economic conditions.

But some strategists were sceptical that the dollar's strength was a reflection of investors bringing forward US interest rate expectations, pointing instead to technical buying related to extended short positions.

US rate futures implied a 58 per cent chance that the Fed would raise its target by 25 basis points by the middle of next year compared with 48 per cent immediately after the FOMC statement.

But analysts also noted that the three-month dollar London interbank rate had been set at a record low of 0.254 per cent.

Dan Greenhaus, chief economic strategist at Miller Tabak, pointed out that credit markets were of crucial importance in gauging expectations of a US interest rate rise.

“In the last tightening cycle, the first rate hike did not occur until June 2004 but Libor began moving higher two full months earlier,” he said. “Keeping an eye on this market can only serve one well when gauging market expectations pertaining to a hike.”

Lena Komileva, head of G7 market economics at Tullett Prebon, said the important element of the statement was that it highlighted the distinction between the Fed's rate and quantitative easing policies and signalled a cautious move towards an exit strategy.