The dollar index lost significant ground on Thursday afternoon, testing the 102.7 mark for the first time in two weeks as continued weakness in US economic data sparked growth concerns amid a backdrop of high inflation, coupled with an aggressive tightening monetary policy.
Fed Chair Powell said the central bank would not hesitate to keep raising interest rates until inflation returns to the 2% target, even if it involves moving past broadly understood neutral levels. On top of that, evidence grows that other major central banks, particularly the ECB and the Bank of England, would be forced to act more aggressively to tame record inflation.
