Dollar Fades Ahead of Fed Minutes Amid Stable Yields
The US dollar softened against major peers on Wednesday as Treasury yields stabilized ahead of the release of Federal Reserve minutes.
Investors are counting on the document to offer fresh guidance on policymakers' thinking, especially given Fed Chair Kevin Warsh's reticence on interest rate outlooks and renewed Middle East tensions.
The euro rose 0.31% to $1.1611, close to its two-month high reached earlier this week, while sterling strengthened 0.22% at $1.3562 after data showed UK inflation in July matched expectations.
Tom Samuelson, chief investment officer at Vineyard Global Advisors, said Japan's central banks have a strong incentive to keep the yen orderly amid structural problems plaguing the country.
The dollar index dropped 0.29% to 99.36 as Treasury yields stabilized, with the benchmark US 10-year note yield declining to 4.696%, and the 30-year bond dipping to 5.283% after hitting nearly a 20-year high.