The dollar fell early in N.Y. on Thursday, after Powell indicated the Fed would change its inflation targeting, allowing CPI to rise above the 2% target for a time. As a result of the policy change, interest rates are set to remain close to zero for a longer time. USD-JPY fell from 106.10 to one-week lows of 105.63, while EUR-USD popped to 1.1899 from opening lows of 1.1794. Equity futures turned higher, while yields headed lower. USD losses later were more than reversed, as risk-on conditions returned, yields moved up again, and profits were taken from the initial knee-jerk reaction.

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