Fed Chair Powell’s comments suggesting a September rate cut caused traders to sell dollars, with the US dollar weakening against major currencies. Powell emphasized the need to monitor data for future rate decisions, leading to a cautious market outlook. Meanwhile, Wall Street indices surged, reaching record highs on optimism about lower borrowing costs and positive earnings. BoJ Governor Ueda’s remarks on increasing wages fueled speculation of a rate hike in Japan, despite the yen’s temporary weakness. Attention now turns to PCE inflation data later this week, which could impact future Fed rate decisions.

Read more at Investing.com: US Dollar Slides as Fed Powell Signals September Rate Cut