The dollar’s decline came as the 10-year US Treasury yield continued its decline from last week’s multi-year high of 4.338%, shedding 4 basis points to 4.0317%.
“The weakness of the dollar and a new drop, although less than yesterday (Tuesday) in US debt yields, seem to reflect the hope of a change in the Fed’s position during the next week”said Derek Holt, head of capital markets at Scotia Economics.
The Fed’s aggressive pace of tightening this year, aimed at reining in stubbornly high inflation, buoyed the dollar. Traders and economists are forecasting an interest rate hike of 75 basis points for the fourth consecutive time, but there is growing speculation that the central bank will slow down in December.
The common European currency appreciated 1.11% to $1.0079, its highest level since September 13. Sterling also hit its highest level since the middle of last month, adding 1.33% to $1.1625, extending the previous day’s 1.6% gain.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
