Dollar Tumbles on Dovish Waller and Yen Strength

The dollar index fell to a one-week low today and is down by 0.57%. Fed Governor Christopher Waller's dovish comments, suggesting underlying inflation is better than core numbers indicate and supporting steady interest rates at this month's FOMC meeting if inflation data shows continued progress toward their 2% goal, reduced the chance of a Fed rate hike at this month's meeting to 50% from 65%.

A stronger yen, which rallied to a one-month high, also weighed on the dollar. The US weekly initial unemployment claims rose to 206,000, close to expectations, showing a stable labor market. The Dutch Central Bank pulled gold bars out of New York for crisis preparedness amid ongoing geopolitical risk.