Waller's Dovish Comments Send USD Tumbling

Federal Reserve Governor Christopher Waller's dovish remarks have sent shockwaves through markets, causing U.S. Treasury yields to tumble and the greenback to weaken.

The Australian dollar rose above 0.7200 against the US dollar during the Asian session on Friday, benefiting from Waller's comments that he would be inclined to keep interest rates unchanged as long as U.S. inflation continues to moderate.

Waller's shift in stance lowered the probability of a September rate hike from 64% to 54%, putting downward pressure on the US dollar.