Dollar Weakens in Response to US Disinflation Signals as Fed Nears the End of Hiking Cycle

The dollar sank to its lowest since April 2022 on Thursday, as cooling U.S. inflation bolstered expectations the Federal Reserve would hike interest rates just one more time this year, eroding the greenback’s yield advantage over its peers.

Against a basket of six currencies, the dollar index fell 0.8% to 99.738 , after dropping earlier to 99.767, a new 15-month trough. The dollar index was headed for its biggest weekly slide in 2023.

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