Stock markets jumped on Friday as US Federal Reserve chief Jerome Powell made clear that the central bank was ready to cut interest rates, a message investors had been longing to hear.
The dollar, which performs better when borrowing costs are higher, fell against the euro, the pound and the yen, which also strengthened after Bank of Japan chief Kazuo Ueda signalled that Japanese rates could rise again.
Investors had been on tenterhooks all week in anticipation of a key speech by Powell at an annual gathering of central bankers in Jackson Hole, Wyoming.
