Earlier this day the dollar slumped 0.5% against a basket of its rivals to 69.755. It also plummeted to a six-month low against the Japanese yen at 107.47.
The US dollar is expected to suffer its biggest two-day drop this year as the US Federal Reserve hinted about the possibility of cutting interest rates as early as next month, Reuters reported.
Earlier in the day, the dollar sank 0.5% against a basket of its rivals while Asian markets enjoyed gains.
The US Federal Reserve along with the European Central Bank and the Australian Central Bank championed more policy stimulus to boost growth which prompted a recovery of such currencies as the Australian dollar and the Korean won.
Meanwhile, the Chinese yuan regained its strength amid dollar’s weakness and indications of possible trade talks between Washington and Beijing.
Previously, the Federal Reserve rejected the possibility of a cut in base interest rates in the coming months, citing robust economic growth.
Trump has repeatedly called on the Fed to cut interest rates and resume quantitative easing in recent months in a bid to boost the US economy and help in the US trade war against Beijing. China has devalued its currency, the yuan, to cope with the harsh US tariffs.