Dollar Dives 1.3% Amid Inflation Fears

The US dollar took its biggest weekly hit since April 10, falling 1.3% to near a one-month low.

This downturn follows a warning from Federal Reserve Chair Kevin Warsh that the central bank may struggle to bring inflation down to 2%, even with higher Treasury yields.

The dollar's slide was exacerbated by Japan intervening to boost its yen, which jumped 3.3% against the dollar before easing back when Japan kept interest rates steady.

The US economic growth slowdown and a slight dip in the Fed's favorite inflation measure also contributed to the pressure on the dollar.