After the Federal Reserve cut interest rates, the US dollar recorded its worst single-day performance since September.

On Wednesday, Federal Reserve Chairman Powell emphasized risks in the labor market in his speech while downplaying inflation concerns, leading to the dollar posting its worst performance in nearly three months. The dollar index closed down 0.4%, marking its largest decline since September 16th, following the Fed's decision to cut interest rates by 0.25 percentage points. Bank of America strategist Alex Cohen said, "Powell's view on the labor market is less optimistic compared to previous forecasts." He added that the comments from the Fed chairman on labor and inflation sparked the dollar's decline. Macro strategist Edward Harrison stated, "As the Fed's stance diverges from increasingly hawkish central banks around the world, the weak dollar should take guidance from bonds and interest rate differentials."