The Dollar Index has been plunging since the fourth quarter of 2022 as the market continued to anticipate a slower pace of interest rate hikes by the U.S. Federal Reserve after inflation data showed signs of slowing down after hitting decades high of 9.1% in June 2022.
A basket of U.S. trade partners’ currencies dropped around 10% from its high at around 114 in late September to 102, hitting a seven-month low.
The euro was up 0.03% to $1.0849, reaching a fresh nine-month high earlier in the session. Meanwhile, sterling was last trading at $1.221, up 0.08% on the day.
Japan’s yen also surged 2.7% against the greenback overnight and rose about 0.2% further on Friday to 128.65 per dollar. Yen was up around 6% in three weeks since the Bank of Japan stunned markets by announcing a measure to widen its band of the 10-year bond yield target late last year.
