The dollar plunged and sparked a rally among the world's leading currencies after Federal Reserve chairperson Jerome Powell all but confirmed expectations that the central bank would cut interest rates next month. The Bloomberg dollar index fell 1 per cent to its lowest level since January and was on course for a fourth straight week of losses, its longest losing streak since April 2023. Jane Foley, head of currency strategy at Rabobank in London, said: "Powell made it clear that the Fed's focus has shifted from inflation to balancing its dual mandate." She added that "the speech did not dispute the possibility of a larger Fed rate cut in September."