The US dollar fell to a two-month low on Tuesday after US Federal Reserve officials indicated that the central bank was nearing the end of its tightening cycle.
A number of Fed officials said the central bank will likely need to raise interest rates further to bring down inflation, but the end of the current monetary policy tightening cycle is nearing.
The comments sent the US dollar down to a two-month low of 101.67 against a basket of currencies.
US interest rate expectations have been a major driver of the US dollar since the Fed began its tightening cycle last year.
Sterling hit a 15-month high of $1.2913 after British wage growth hit a joint record, increasing pressure on the Bank of England to tighten policy further to control inflation.
The yen was among the biggest gainers, rising around 0.6% and crossing 141 per dollar for the first time in nearly a month. It was last traded at 140,455.
The euro rose 0.1% to $1.1012, the Australian dollar settled at $0.6680, and the New Zealand dollar fell 0.2% to $0.6198.
