Recent U.S. inflation figures and falling oil prices reduce expectations for aggressive Federal Reserve tightening this year.
The dollar fell for a second consecutive session on Friday, pressured by cooling inflation expectations and a 4% drop in oil prices. The move follows data showing a key U.S. inflation measure met economist forecasts, easing bets on further rate hikes.
Despite the decline, the greenback remains on track for its strongest monthly gain since March, supported by a hawkish Fed policy shift earlier in the week. Markets still price in a 25 basis point rate increase from the Fed this year, though recent data has moderated expectations.
The yen stayed near intervention-triggering levels, while broader dollar weakness reflected a pullback after a months-long rally. Consumer sentiment also rose slightly, though it missed estimates.