Dollar Weakens Below 99.50 Amid Easing Yields

The US Dollar Index (DXY) is trading near 99.40 in early European hours on Thursday, weakened by selling pressure and easing US Treasury yields.

This comes after the US August ISM Services Purchasing Managers Index (PMI) report was released on Thursday, showing private companies added 38,000 jobs in August, down from 46,000 in July.

The disappointing ADP Employment figure weighed on the US Dollar against its rivals, but hawkish comments from Federal Reserve Chair Kevin Warsh could provide support for the DXY in the near term.

New York Fed President John Williams said rising long-term bond yields are not driven by inflation fears, but rather a reflection of a solid economy.