The euro was down 0.2% against the dollar and was still slipping from a one-month high of $1.0787 hit on Monday, when euro zone national inflation data indicated a high for the bloc.
The dollar index hit a one-month low of 101.29 on Monday after retreating from a nearly two-decade high above 105 in mid-May as US inflation and other economic indicators showed signs of slowing. hit a ceiling amid the aggressive tightening of monetary policy by the Federal Reserve.
After two days of advances, the index has returned to trading at 102.00 units.
Markets have priced in a 50 basis point interest rate hike at Federal Reserve meetings this month and next, in line with what policymakers have signaled, but the outlook further that’s why they are dark.
The monthly report on employment in the United States, to be published on Friday, could offer new clues.
The dollar rose 0.7% to 129.615 yen, its highest level since May 17, as US debt yields rose.
The 10-year Treasury bond yield rose 1.8 basis points to 2.8622%, having hit its highest level since May 19 at 2.888%.
The spread between US and Japanese 10-year bond yields widened to 265 basis points, a high not seen since May 19.
Sterling was flat at $1.2605 after posting its first month of gains for the year, with a small 0.2% gain snapping a four-month losing streak.
The Chinese yuan fell for a second day after posting three consecutive months of losses, following the strength of the dollar in world markets.
As for cryptocurrencies, bitcoin was down 0.6% at $31,572. Ether was stable at $1,937.
The prices of Prayed fell to a two-week low on Wednesday, due to the strength of the dollar and rising US Treasury yields amid global inflation concerns, which could prompt more aggressive monetary policy measures.
Spot gold was down 0.33% at $1,831.10 an ounce by 1006 GMT, after hitting a low not seen since May 19 at $1,827.80 an ounce.
US gold futures were down 0.8% at $1,833.10 an ounce.
Rising real yields on debt in the United States and continental Europe and a firm dollar are negative factors for gold, said Quantitative Commodity Research analyst Peter Fertig.
“Gold could see some support only if central banks don’t do their job properly to fight inflation,” he commented.
Markets have priced in interest rate hikes of 50 basis points by the Federal Reserve this month and next, although uncertainty remains about future prospects.
US President Joe Biden met with Federal Reserve Chairman Jerome Powell on Tuesday to discuss the runaway rate of inflation, which is draining American wallets.
Bullion is considered a hedge against inflation and a safe haven in times of political and economic uncertainty. However, higher US interest rates raise the opportunity cost of holding gold.
Among other precious metals, silver was down 0.2% at $21.49 an ounce, after hitting a two-week low.
Platinum rose 1.1% to $974.85 an ounce and palladium added 1.2% to $2,022.74 an ounce.
Source: Ambito
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