The US Dollar has been weakening across major global currencies over the past 1-2 weeks, mainly driven by two factors.
A shift to a more “risk on” environment with global stocks rallying has seen the US$ decline, as it is not in as great a demand as a safe haven.
Furthermore, and more notable over the past 24 hours has been the anticipation of a more dovish Federal Reserve, ahead of the meeting on Wednesday.
The Fed delivered a far more dovish tone than even the market had expected on Wednesday, projecting no further rate hikes this year and ending the steady decline of its balance sheet in September.
This encouraged a far more aggressive selloff on the US Dollar and here we focus on the USDJPY and EURUSD Forex rates.
See the full article here: https://www.fxexplained.co.uk/forex-articles/current-market-analysis/us-dollar-plunges-as-the-fed-stays-dovish/