Why is this causing USD/EUR exchange rate to fall? And in general USD to lose value compared to other currencies. My guess is that expectation of higher inflat

Why is this causing USD/EUR exchange rate to fall? And in general USD to lose value compared to other currencies. My guess is that expectation of higher inflation was combined with expectation of further interest rate increases to combat it. Interest rate increases generally make currency more attractive for investments from abroad, which increases exchange rate. This expectation was "priced in" current exchanged rates and now the market has corrected.