US Dollar Plunges as NFP Takes Center Stage
The US Dollar Index (DXY) plummeted to its lowest level in over a week on Thursday, reaching 98.90 and falling 0.67% from Wednesday's high of 99.86.
This decline was largely driven by a sharp rally in the Japanese Yen (JPY), with USD/JPY down around 2% at the time of writing and trading near 155.45, its lowest level in a month.
The US Treasury yields also retreated across the curve, with the benchmark 10-year yield trading around 4.75% after touching 4.81% on Wednesday.
However, it was less-hawkish comments from Federal Reserve Governor Christopher Waller that seemed to spark selling pressure on the Greenback, prompting traders to scale back bets on a rate hike at the September 15-16 meeting.
The probability of a rate hike has fallen to around 50% from 63% a day earlier, according to the CME FedWatch Tool.