Dollar Plunges to Four-Month Low Amidst Fed Policy Confusion

The US dollar suffered its worst monthly performance in April since July as the Federal Reserve's policy direction under new Chair Kevin Warsh remained unclear.

The greenback, tracked by the US Dollar Index (DXY), declined more than 1.3% for the month amidst concerns over inflation sparked by rebounding oil prices and the Fed's internal divisions.

The Japanese yen surged over 3% against the dollar on Thursday, its largest single-day gain since 2022, prompting suspicions of official intervention in the currency market.