The dollar fell in early trading on Thursday, hitting a one-month low against the yen as traders focused on expectations that U.S. interest rates will fall this year, even after data showed some surprise rise in inflation.
In the cryptocurrency market, Bitcoin retreated from the record it set earlier in the week, but its 0.4 percent loss on the day is negligible given its 55 percent rise year-to-date.
In testimony before lawmakers on Wednesday, Federal Reserve Chairman Jerome Powell said interest rate cuts would likely be appropriate later this year if the economy develops broadly as expected and once officials become more confident that inflation will slow steadily.
These statements, along with data released on Wednesday that reflected weakness in the labor market, led to a decline in US Treasury bond yields, which in turn led to a broad decline in the US currency.
Against the yen, the dollar hit a near one-month low of 148.94 in early Asian trading on Thursday.
The euro and the pound held steady near their one-month highs hit in the previous session, last trading at $1.0902 and $1.2738, respectively.
The New Zealand dollar rose 0.05 percent to $0.6133, and the Australian dollar rose 0.11 percent to $0.6572.
In the world of cryptocurrencies, the price of Bitcoin reached $66,232.
