Dollar's Recovery Falters Amid Falling Treasury Yields

The US dollar's recent recovery has stalled due to falling long-term Treasury yields. The decline in yields, which supports bond-buyback operations, has reduced the dollar's interest-rate advantage and limited its rebound.

Geopolitical tensions surrounding Iran continue to support demand for the dollar as a safe-haven asset, but this factor has not been strong enough to sustain a significant appreciation in the currency.

Today, markets will focus on fresh US economic data, including revised second-quarter GDP figures and core Personal Consumption Expenditures (PCE) price index. Forecasters expect slower economic growth, with potential revisions to 1.5% from 2.1%, and persistent inflationary pressure, which could complicate the Federal Reserve's policy decisions.