"Dollar Plummets as Inflation Surprises, Traders Anticipate Rate Changes"

The US dollar continued its decline in Asia as traders interpreted slower US inflation as a sign that interest rate hikes will soon come to an end. The dollar fell more than 1% against the euro, reaching its lowest level in over a year. The euro and yen both reached new highs, while the US dollar index dropped to its lowest level since April 2022. Market expectations for further rate increases have decreased, with the view that the Federal Reserve will likely hike rates at the end of July and that it will be the last one. Other currencies, including the New Zealand dollar, Aussie, Swiss franc, and sterling, also rose to new highs.