India, May 21 -- The U.S. dollar weakened against other major currencies in the Asian session on Wednesday amid increased risk-on mood, as some traders are still looking to cash in on the strong upside in the markets seen over the past several weeks. Furthermore, growing market acceptance that the Federal Reserve (Fed) will lower interest rates further this year amid evidence of diminishing inflationary pressure and a dismal growth forecast, also pushed the USD lower.
Meanwhile, two U.S. Fed officials signaled that interest rates are likely to remain on hold until at least September due to a murky economic outlook. Fed Vice Chair Philip Jefferson backed a wait-and-see approach, citing uncertainty and warning against temporary price increas...