On Friday, the dollar dropped broadly for a second straight day as investors favored riskier currencies in response to U.S. inflation data that came in lower than anticipated and strengthened the case for the Federal Reserve to scale down its significant interest rate increases.

The move started after data on Thursday revealed that U.S. consumer inflation increased 7.7% year-over-year in October, below expectations for 8% and the smallest rate since January.

The dollar’s long rally over the last two years had drawn a host of dollar bulls leading to crowded positioning and Thursday’s data left a lot of them looking for a quick exit, strategists said.

“It’s not just short term trend-followers, momentum players having to get out of positions, but some long-term structural long dollar positions have to be unwound,” said Marc Chandler, chief market strategist, at Bannockburn Global Forex in New York.

The dollar was 1.41% lower against the Japanese yen at 138.96 yen; while the euro advanced 1.09% against the greenback to $1.0322.