FOREX-Dollar hits two-year low, fourth month of losses on Fed inflation mandate

The dollar hit a more than two-year low and a fourth straight month of losses on Monday in the wake of the U.S. Federal Reserves policy shift on inflation.

Against a basket of currencies the dollar was down 0.15% at 92.097 in midday trading, having earlier hit its lowest since April 2018. It is down 1.24% for the month, marking its worst August in five years and the longest run of monthly losses since the summer of 2017.

The euro, which makes up the majority of the basket against which the dollar index is weighted, was up 0.35% at $1.195, having gained 1.45% in August, also its fourth straight month of increases.

Investors are adjusting to a speech last Thursday in which Federal Reserve Chair Jerome Powell outlined an accommodative policy change that is believed could result in inflation moving slightly higher and interest rates staying lower for longer.