The US Dollar dipped broadly on Tuesday after comments made by one Federal Reserve Bank official triggered the greenback’s sell-off. John Williams, President of the San Francisco Branch of the Fed, said that central banks should consider looser monetary policies by increasing inflation targets (for example, both the Banks of England and Japan have 2% inflation targets) and placing more focus on economic growth. The US Dollar had already been under recent heavy pressure as the likelihood of a 2016 rate hike diminishes given the latest data and the increasingly dovish sentiment of the Fed’s Open Market Committee members.

As reported at 10:56 am (BST) in London, the AUD/USD was trading higher at $0.7730, a gain of 0.70% while the NZD/USD was up 1.10% to $0.7298. Also in Asian trading, the USD/JPY was down 1.17% to trade at 100.085 Yen. The EUR/USD was higher at $1.1275, a gain of 0.75% for the Euro.

No Stopping Yen’s Slide

The Bank of Japan is one particular central bank that has used an ultra loose policy in an attempt to grow the Japanese economy. The Yen, as a result, has been under relentless pressure as markets weigh the likelihood of more easing from the BOJ, a direct intervention, or more fiscal policies measures from the Japanese government. Analysts believe that the USD/JPY is likely to be trading at 96 before the end of the year; however that depends on the aggressiveness of the BOJ policymakers.