Dollar Dives Near Multi-Month Lows as Yields Slip

The US dollar is hovering near multi-month lows against major peers as Treasury yields ease from recent highs. Investors are awaiting the release of minutes from the Federal Reserve's latest policy meeting for clues on interest rates.

The euro has inched up 0.1% to $1.1585, remaining close to a two-month high touched earlier this week. Sterling is also higher at $1.3538, holding near a three-month high ahead of British inflation data due later today.

Data released in the past few weeks have pointed to a softer US economy, including unexpected job losses in July and mild inflation readings, leading investors to scale back rate-hike bets. 'If the Fed does not follow through with the rate hikes that are being discounted, the upside for bond yields should be very limited here,' said Harvinder Kalirai, chief global fixed income and currency strategist at Alpine Macro.