The US dollar once again 'deflected' from expectations to strengthen after the Federal Reserve (Fed) raised interest rates by 75 basis points at its latest policy meeting.
Against most major currencies, the currency king fell to a near three-week low after Chairman Jerome Powell eased market concerns about continued aggressive monetary tightening.
Powell said a big rate hike may be appropriate for the Fed's next meeting but that the decision will depend on the data and they will no longer provide guidance on forward policy setting.
Adding support to market sentiment was when Powell said he did not see the US currently in recession citing the low unemployment rate and strengthening wage and job growth.
This has pushed the Wall Street stock market to soar and caused the US dollar to drop low following the possibility that the rate of increase will slow down.
The euro and pound also increased by taking advantage of the decline in the US dollar, but the price movement is seen to be still in the horizontal zone since last week.
While Asian currency trading showed the Aussie and New Zealand dollars which also surged with the Aussie dollar also receiving support from Australian inflation data which continued to strengthen in the second quarter.
The Canadian dollar also rose on a boost from positive crude oil trading while the yen also strengthened following a decline in US bond yields.
Investors' attention is now focused on the release of US economic data for the second quarter which could influence currency market movements.
