The U.S. dollar has fallen sharply since the Federal Reserve lowered its expected number of rate increases, and that may lead to a global currency war, Art Cashin, UBS director of floor operations, said Thursday.
"The Fed has effectively taken the sting out of the dollar; very good for our multinationals, but trading partners are not going to like it," Cashing told CNBC's "Squawk on the Street."
Against a basket of currencies, the dollar has fallen 2 percent since the Fed's announcement.
The dollar was notably volatile against the yen, moving sharply lower before snapping back, rising a full yen during the U.S. session from a level weaker than 111. However, the greenback weakened once again and was down about 1 percent in late-morning trading.