U.S. Dollar Tumbles After Powell Rules Out Larger Rate Increases

The U.S. dollar tumbled after Federal Reserve Chairman Jerome Powell took the prospect of larger interest-rate increases off the table. The Fed approved a half-percentage-point interest rate increase Wednesday.

The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, fell nearly 1% to 94.85 Tuesday. The move halts a winning streak that has pushed the dollar to multidecade highs as investors bet the Fed will move faster than other global central banks to tame inflation.