Dollar Near Multi-Month Lows as Treasury Yields Ease
The US dollar is near multi-month lows against major peers due to Treasury yields easing from recent highs. The yield on the benchmark US 10-year Treasury note extended declines and was last at 4.702%, while that on the 30-year bond fell to 5.282%. Market participants are now looking for clues as to policymakers' views on interest rates, which will be revealed in the Federal Reserve's release of minutes from the most recent meeting of its monetary policy-setting Federal Open Market Committee.
The dollar index, which measures the US currency against six major peers, was down marginally at 99.65. The Japanese yen was little changed at 159.56 per dollar after giving back much of its intervention-driven gains. Meanwhile, Harvinder Kalirai, chief global fixed income and currency strategist at Alpine Macro, said that if the Fed does not follow through with rate hikes being discounted, the upside for bond yields will be very limited.