The dollar fell to a nine-day low against a basket of major currencies on Thursday, hitting a nine-day low in a setback to its recent rally. Meanwhile, the British pound, Australian and New Zealand dollars rose. This was important news for financial market participants. Expectations that the US Federal Reserve will tighten monetary policy sooner than previously expected have helped the dollar rise in September with progress so far in October. But that could pare back recent gains. In fact, after the Fed's September meeting confirmed that tapering of stimulus is likely to begin this year. "It seems like a classic case of buying the rumor by selling the fact type mentality," said Neil Jones, head of FX sales at Mizuho. "The Fed has confirmed what many investors were expecting. I would advise everyone to hold long dollar positions." "This is just a situation of liquidating long dollar positions. People are able to profit from long dollar positions because the Fed's tightening is now somewhat priced in," he continued. The dollar fell to a low of 0726 GMT, the dollar index down 0.1% on the day at 93.994, its lowest since Oct. 5. On Tuesday, the dollar hit a one-year high of 94.563. The euro rose 0.1% to $1.16105, its highest in nine days. A Labor Department report showed U.S. consumer prices rose solidly in September, and they are likely to rise further amid a surge in energy prices that could pressure the Fed to act more quickly to normalize policy. The minutes of the Fed's September meeting also showed that policymakers are increasingly concerned that high inflation is sustainable. "My expectation is that this dollar weakness is not going to last long and we can get back to a longer-term bull trend," said Mizuho's Jones. In addition, an ING strategist said that U.S. initial jobless claims and PPI data are due later in the day. "Today's US PPI data should be a reminder that the Fed needs to be more vigilant about inflation," ING strategists wrote in a note to clients. The Australian dollar, seen as a liquid proxy for risk, rose 0.3% to $0.74055, as it brushed aside data showing a drop in jobs and investors began betting on a quick recovery as lockdown measures ease. The New Zealand dollar also rose 0.5% to $0.701, its highest in two-and-a-half weeks. The Swiss franc rose about 0.2% against the euro at around 0600 GMT, hitting an 11-month high versus the euro, a move driven by a combination of risk aversion in global markets and broader euro weakness, according to Mizuho's Jones. The Turkish lira pared some losses, pulling back from a record low hit overnight after President Tayyip Erdogan fired three members of the central bank's monetary policy committee. Elsewhere, bitcoin crypto was hovering around $57,570. It had earlier in the session hit a five-month high of $58,550. The cryptocurrency’s collapse was a “plausible scenario” and rules were being put in place to regulate the fast-growing sector as a “matter of urgency,” Bank of England Deputy Governor Jon Cunliffe said on Wednesday.