Dollar is at its lowest level in a month after US bond yields fell

The dollar fell to its lowest level in a month on Tuesday, October 24, against a basket of other major currencies after US Treasury bond yields declined, but it regained some of its gains as the euro declined against the backdrop of weak economic data.

The dollar index, which measures the performance of the US currency against a basket of six currencies, rose 0.04% to 105.63. The index had fallen to 105.35 earlier in the session, the lowest level since September 22.

Survey data showed on Tuesday that trade activity in the euro zone suddenly declined this month in light of a decline in demand across the region, indicating that the bloc may enter a state of recession.

German data in particular declined, indicating a contraction in business activity in the services sector, while the manufacturing sector continued to stagnate.

The euro lost some of its gains and fell in the latest trading by 0.12% to $1.0656, after rising approximately 0.1% to $1.0684 before the release of purchasing managers’ index survey data in Germany and the eurozone.

Yesterday, Monday, 10-year US Treasury bond yields rose above 5% for the first time since July 2007, but they later fell sharply.

The dollar fell against the yen in recent trading by 0.17% to 149.45 yen, with the two currencies affected by changes in US bond yields.

The British pound rose in recent trading by less than 0.1% to $1.2258. Data on Tuesday showed that the UK labor market slowed slightly from June to August.

In cryptocurrency markets, Bitcoin continued to rise in Asian markets to touch $35,198, its highest level since May 2022.