The dollar fell more than 2% against other major currencies in August, marking its biggest monthly drop this year and providing some relief to economies that have suffered under the weight of dollar strength.

The dollar's downtrend, which has long been anticipated, is driven by expectations that the U.S. Federal Reserve will cut interest rates as the economy weakens.

"The dollar has been under pressure and it will remain under pressure over the remainder of this year," said Guy Miller, chief market strategist, Zurich Insurance Group.

Here's where the relief is being felt the most.

1/ YEN INTERVENTION WATCH, CANCELLED

In July, traders braced for Japanese intervention to prop-up a yen that hit 38-year lows against the dollar, a headache for politicians and the Bank of Japan.

But the yen's dramatic rebound has put an end to such intervention speculation.

One dollar is worth 146 yen, down more than 15 yen or around 10% from its mid-July levels, thanks to a BOJ rate hike, looming Fed cuts and a sharp reversal of popular carry trades.

"We're not going to get a rebound in U.S. rates like we've had in previous corrections in the past two years. This is a fundamental turn and dollar/yen is heading lower," said Derek Halpenny, MUFG's head of research global markets EMEA.

It's too late for Japanese Prime Minister Fumio Kishida however. He soon steps down, and the weak yen, which drove up prices, contributed to his undoing.