Due to the weaker than expected inflation data in United States, the U.S. Dollar Index dropped against the basket of six major currencies on Tuesday to end the session in the red at 96.97.
The U.S. Dollar closed Tuesday's session lower as the Federal Reserve started its two-day meeting, with many investors expecting the central bank to deliver a dovish outlook on monetary policy when the meeting ends on Wednesday.
The U.S. Dollar closed Wednesday’s session lower after Federal Reserve policymakers abandoned predictions for more rate increases this year as the U.S. central bank confirmed an expected slowdown in the economy.
The U.S. Dollar closed Thursday’s session higher recovering from the unexpected announcement from the Federal Reserve policymakers that a slowdown in the economy is expected and growth rates are unlikely to increase.
The U.S. Dollar closed Friday’s session higher following a rebound in U.S. home sales, but gains were limited by a sharp increase in the yen as the U.S. government bond yields dropped amid fears of slowing growth.