Dollar Index Stuck Near Multi-Month Lows Amid Cooling Macroeconomic Prints
The US dollar continues to trade near multi-month lows due to cooling macroeconomic prints and reduced expectations for Federal Reserve rate hikes. The dollar index slipped 0.2% to around 99.48, remaining close to its lowest levels since June 5.
Fixed-income markets also experienced a slight reprieve with benchmark yields easing to 4.68% and the 30-year yield backing off to 5.27%, offering some relief to cross-border capital flows.
European majors capitalized on the yield pullback, pushing toward key chart resistance. The euro inched up 0.2%, approaching $1.1520 and probing its highest levels since June 17, while the pound advanced 0.2% to trade near $1.3520, heading toward its highest levels since May 12.
In Asia, the yen steadied at 159.22 per dollar, a marginal 0.3% daily gain that kept the pair locked in the danger zone near the psychologically critical 160 mark. Currency desks remain hyper-vigilant for fresh intervention signals from Tokyo should carry-trade demand push the currency across the 160 threshold.