The US dollar slipped to a one-year low against its main rival in the European session amid rising expectations that the Federal Reserve (Fed) will halt rate hikes.
Price pressures in the United States continued to ease after the latest data showed consumer and producer inflation eased significantly in March.
This is coupled with a report of US jobless claims rising to the highest level since January 2022 last week, signaling that the labor market is beginning to falter.
Against a basket of major currencies, the dollar index, which measures the strength of the greenback, traded dismal at the 100.80 price level.
Looking at the movements of major currencies more broadly, the euro continued to strengthen by rising to a new one-year high against the US dollar.
While the pound remained traded at the strongest level in 10 months at around 1.2530 against the greenback at the opening of the European session.
The Aussie and New Zealand dollars respectively remained stable at one-month and two-month highs against the US dollar.
The dollar loonie remained strong at a two-month high against the USD even as oil prices began to retreat from their monthly highs.
Currency markets now place expectations for the Fed to raise rates by 25 basis points at next month's meeting.
However, investors need to be cautious as there is still data to be released in the New York session, namely US retail sales and consumer confidence.
