The dollar experienced broad-based weakness following the release of GDP figures that fell short of expectations. The data suggested a cooling in the pace of economic expansion, prompting a reassessment of monetary policy expectations among investors. This weaker-than-anticipated growth has led to speculation that the Federal Reserve may adopt a more cautious approach to raising interest rates.

Currency analysts noted that the dollar’s decline was most pronounced against the euro and the Japanese yen. The euro benefited from the perception that the European Central Bank is likely to maintain its current monetary policy stance, while the yen gained ground as investors sought safe-haven assets.

The GDP report is expected to influence the Federal Reserve’s upcoming policy decisions. Market participants will be closely monitoring upcoming economic data releases for further clues about the trajectory of interest rates.