The dollar recorded its worst single-day performance since September after the Federal Reserve cut interest rates.

According to ChainCatcher, citing Jinshi, on Wednesday, Federal Reserve Chairman Jerome Powell emphasized labor market risks while downplaying inflation concerns, causing the dollar to record its worst performance in nearly three months. The dollar index closed down 0.4%, its biggest drop since September 16, after the Fed decided to cut interest rates by 0.25 percentage points. Bank of America strategist Alex Cohn said Powell's less optimistic stance on the labor market led to the dollar's decline. Macro strategist Edward Harrison pointed out that the weak dollar should find guidance from bonds and interest rate spreads.