The dollar's strength cracked in September as fundamentals turned against the greenback. Cooling U.S. inflation, softer consumer spending, and signs of a slowing labour market gave traders fresh confidence that the Fed's tightening cycle is over.
At the same time, growing chatter about fiscal strain and a possible government shutdown eroded demand for U.S. assets.
The Dollar Index drifted lower while EUR/USD and GBP/USD gained ground, supported by steady European inflation data and improving U.K. growth signals.
By month's end, markets weren't chasing yield -- they were repositioning for a world where the dollar no longer leads the charge.