Data from the U.S. Labor Department on Thursday showed the producer price index (PPI) fell by the most in nearly three years last month, coming a day after inflation data pointed to moderation in consumer prices.

The greenback took another leg down on Friday and the U.S dollar index , which measures the currency against six major peers, slid to a roughly one-year low of 100.78.

It was last 0.15% lower at 100.82, and was headed for a weekly decline of more than 1%, its steepest drop since January.

Meanwhile, the euro rose to a fresh one-year top of $1.1075, pushing past its previous high from Thursday.

The common currency was last 0.2% higher at $1.1070, and on track for a weekly gain of more than 1.5%.

“The easiest way to express a dollar negative view has been with the euro,” said Ray Attrill, head of FX strategy at National Australia Bank.

“The significant downside surprise in U.S. PPI has made people a bit more convinced of the view that the Fed will (soon) be done … and (strengthened) conviction that inflation will allow the Fed to be cutting rates before the end of the year.”

Similarly, the British pound hit a 10-month high of $1.2545, and was last 0.14% higher at $1.25405.

Money markets are pricing in a 69% chance the Fed will raise interest rates by 25 basis points next month, though a series of cuts are also being priced in from July through to the end of the year, with rates seen just above 4.3% in December.

Adding to signs that global inflationary pressure is waning was an unexpected surge in Chinese exports, which in March shot up 14.8% from the same month a year earlier, stunning economists who predicted a 7.0% fall in a Reuters poll.

The upbeat Chinese data, alongside a robust March employment report in Australia, kept the Australian dollar supported at around $0.6783 on Friday, having surged 1.3% in the previous session on the back of the data releases. The Australian and New Zealand dollars are often used as liquid proxies for China’s yuan.

“It was almost like a perfect positive storm for the Aussie,” said Attrill. “Starting with the employment numbers … and the China trade numbers which looked exceptionally good.

“You layer on top of that, the dollar weakness from the data last night and positive risk sentiment, and it was a (raft) of good news for the Aussie.”

The New Zealand dollar similarly gained 0.19% to $0.6309, after jumping 1.3% on Thursday.

Elsewhere in Asia, Japan’s yen rose marginally to 132.47 per dollar, while the offshore yuan gained more than 0.5% to 6.8327 per dollar.