The dollar hit its lowest level in more than five months against a basket of currencies on Thursday and was set to post its biggest quarterly percentage loss in more than five years after traders continued to digest dovish comments from Federal Reserve Chair Janet Yellen.
The euro continued four straight sessions of gains against the dollar and hit $1.1411, marking the first leap above $1.1400 in 5-1/2 months. The dollar index, which measures the greenback against a basket of six major currencies, hit its lowest level since mid-October of 94.319.
The index was on track to post a quarterly loss of more than 4 percent, the largest since the third quarter of 2010. The euro was set to gain about 4.8 percent to mark its biggest quarterly gain in five years.
The dollar was set to decline about 6.5 percent against the yen for its largest quarterly drop since the third quarter of 2009.
Analysts said traders continued to push out expectations for the next Fed interest rate increase after Yellen said on Tuesday the central bank would proceed cautiously in raising rates and highlighted external risks such as slower global growth.