The dollar fell against most of the major currencies today, after the Federal Reserve (the US central bank) opened the door to a temporary halt to the sharp monetary tightening cycle, although the markets were shocked, due to the reluctance to take risks amid a decline in US bank stocks.
In light of weakness in Asian trading, the pound rose 0.2% to its highest level in nearly 11 months at $1.25905, while the euro rose 0.19% to $1.1082, hovering near its latest peak in a year.
The dollar index also fell, in the latest reading, by 0.14%, to 101.09, after declining by more than 0.6% in the previous session.
The cautious appetite for risk supported the Japanese yen, which represents a safe haven in market turmoil, as it rose about 0.1% against the dollar to 134.56.
The risk-sensitive Australian and New Zealand dollars reversed their earlier losses during Asian trade, rising 0.3% each to $0.6692 and $0.6249, respectively.
All eyes are on the European Central Bank, which is expected to raise interest rates for the seventh consecutive meeting later today.
