US Dollar Softens as Bond Market Steadies Ahead of Fed Minutes
The US dollar softened against major peers on August 19 as bond market sell-offs eased ahead of the Federal Reserve's latest policy meeting minutes.
Investors are counting on the document to offer fresh guidance, particularly after Fed chair Kevin Warsh has been reticent on the rate outlook and renewed Middle East tensions added to unease.
The euro rose 0.31% to $1.1611, near its two-month high touched earlier in the week, while sterling was 0.22% higher at $1.3562 after UK inflation data showed a rise in line with expectations.
Tom Samuelson, chief investment officer at Vineyard Global Advisors, said Japan's central banks have an incentive to keep the yen orderly due to structural problems.
The dollar index was down 0.29% at 99.36 as US Treasury yields declined, but some cautioned against complacency, warning that yields were still elevated and an increase could reverberate across markets.