The US dollar fell around 0.5% against a basket of currencies for the biggest two-day loss since February 2018. The dollar dropped to a three-month low against other global currencies and a six-month low against the Japanese yen.
The decline started ahead of an announcement from the Federal Reserve on its position regarding upcoming stimulus. To keep the economy operating smoothly, the Federal Reserve implied it would cut interest rates as early as next month. Analysts expect three Fed rate cuts before the end of the year and as many as five cuts into the middle of 2020.
Traders and analysts say a decline in 10-year Treasury yields and a rise in the price of gold near a six-year high suggests the dollar could face a continued period of downward pressure on its price.