As traders saw a surprisingly muted reading of U.S. inflation as a warning that U.S. rates could rise as early as this month, the dollar plunged to its lowest level since last April on Thursday, setting the stage for its worst weekly decline so far this year.

Inflation last month decreased far more quickly than anticipated, according to figures released by the US on Wednesday. The dollar fell to its lowest levels in over a year against the euro and sterling as well as its lowest levels in over eight years versus the Swiss franc as a result, causing the greatest one-day dollar sell-off in the previous five months.

The Federal Open Market Committee (FOMC) is expected to raise rates again later this month, according to interest rate futures, but prospects of any additional hikes have vanished.

EUR/USD set for its biggest run of gains versus the dollar this year—a sixth straight day of advances. After reaching an earlier high of $1.1175, it was last up 0.4% at $1.1173.

GBP/USD advanced by 0.6% to $1.3073, poised for hitting gains for the sixth day in a row.

USD/JPY adding 4% over the previous five days, the yen maintained its value against the dollar at 138.565 in part due to a further decline in U.S. Treasury yields, which the dollar/yen currency pair is known to closely follow.