Dollar crumbles as sluggish data suggests slower Fed rate hikes

The dollar plunged to its lowest versus the euro since last October and washed up all its recent gains against the Japanese yen on Wednesday amid growing concern that the Federal Reserve will hike rates at a slower pace a slower pace than previously anticipated.
EUR/USD soared more than 2 percent to touch 1.11455, its peak since Oct. 22. The greenback tumbled over 2 percent against the yen to almost a two-week low of 117.055. Friday’s gains on the USD/JPY following the Bank of Japan’s surprise shift to negative interest rates, were wiped out in just over 2 days.
US shares ended the session higher after a roller coaster ride which saw the Dow fall from a 100 point positive open to 150 down, to again rally and close higher. Gains were mostly spurred by the comeback in oil and a lacklustre ISM non-manufacturing index print for January.
The reading came in at 53.5, below the expected 55.1, the lowest reading since December 2013, with markets pricing lower the probability of further rate hikes by the Fed this year.
WTI crude jumped about 8 percent in choppy trade after the Energy Information Administration said US inventories rose by 7.8 million barrels last week. Crude prices slipped below $30 a barrel shortly after the EIA data, but surged on a weaker dollar.