The dollar index fell below 98 on Friday, hitting its lowest level since late February, after posting its largest one-day decline since mid-March. The drop was largely driven by a sharp rally in the yen, following suspected intervention by Japanese authorities in currency markets. Reports indicated that US officials had been notified in advance, aligning with the G7 practice of coordinating major currency interventions. On the economic front, fresh data revealed that US manufacturing growth was unchanged at a four-year high in April, amid a strong new order growth, further lengthening of supplier deliveries, and a sharp rise in price pressures amid the ongoing Iran conflict. On monetary policy, Cleveland Fed President Beth Hammack and Minneapolis Fed President Neel Kashkari both expressed concerns that the Fed’s latest policy statement was too dovish, underscoring the potential challenges incoming Fed Chair Kevin Warsh may face if he attempts to lower interest rates.