Investing.com - The U.S. dollar fell on Wednesday after New York Federal Reserve President John Williams said the economy looks "weaker than previously thought" and the central bank needs to stay flexible.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.5% to 98.415 as of 11:06 AM ET (15:06 GMT).
Slowing global growth has contributed to weak manufacturing data and the economy could be less resilient than was previously thought, Williams said in prepared remarks at a conference in New York City.
His comments cemented expectations that the central bank will cut rates at its meeting later in the month.
The Japanese yen, which is seen as a safe haven in times of market turmoil, fell, with USD/JPY rising 0.2% to 106.14.
Meanwhile sterling surged on hopes of a Brexit delay after U.K. lawmakers voted to take control of Parliament and introduce legislation intended to stop a no-deal Brexit on Oct. 31. A vote on the bill is expected at 2 PM ET (18:00 GMT) and it is expected to pass.
Prime Minister Boris Johnson said he will push for a snap election if the proposed legislation passes.
GBP/USD jumped 1% to 1.2196, while EUR/USD rose 0.6% to 1.1035.