The dollar fell to a three-year low against a basket of currencies as the dollar index reached 88.14 levels, its lowest level since 2014, heading towards the biggest weekly loss in two years.
Since the beginning of the year various factors weighed on the US dollar, including market concern following the weakening of the dollar's strategy as other countries start in scaling back easy money policy, also concerns has increased about the US budget deficit, which is expected to reach nearly 1 trillion in 2019 in the light of government spending and tax cuts for large companies.
The Dollar was unable to maintain gains after positive inflation data, pushing Treasury yields to a 4-year high, with expectations currently that the FED will raise interest rates four times this year.
The euro rose by 0.4% to hit its highest level since December 2014 against the dollar at 1.2554 levels and on its way to record weekly gains of 2.5%. Also, the Swiss Franc rose to its highest level since June 2015 against the dollar.
Against the Japanese yen, the dollar is on track to record near 3% losses this week as the USDJPY hit a 15-month low of 105.54. Kuroda's re-appointment as governor of the Bank of Japan did not affect the yen's moves appreciably, given that monetary policy is likely to stay ultra-loose for some time.
The pound continued to rise for a fifth straight day against the US dollar, hitting its highest level since Feb. 5 at 1.4144.
