The US Dollar came under renewed and significant selling pressure, retreating to two-month lows even though the US tariff narrative remained unchanged and the Russia-Ukraine peace talks showed no signs of improvement.
The Dow Jones Industrial Average (DJIA), which measures the performance of 30 large-cap US stocks, fell sharply on Thursday, dropping more than 1.40% to 43,980.
On Thursday, St. Louis Fed President Alberto Musalem warned that rising inflation expectations combined with the risk of stubborn stagflation could create a double challenge for the US economy.
Raphael Bostic, President of the Atlanta Federal Reserve, still sees room for two rate cuts this year, though much depends on the evolving economic conditions.
US citizens filing new applications for unemployment insurance rose to 219K for the week ending February 15, as reported by the US Department of Labor (DoL) on Thursday.