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The dollar suffered losses on Wednesday, as declining US yields weakened the momentum generated by its recent recovery and investors cautiously resumed bets that it could continue to slide.
Against the euro, the dollar recorded its biggest daily decline in more than a month and declined more than 1% against the pound sterling, which was also supported by the Bank of England governor’s reduction in the possibility of imposing negative interest rates.
The sterling reached its highest level in a week at $1.3693 in Asian trading today, while the euro settled at $1.2214.
The Australian and New Zealand dollars rose from their lowest level in a week, as the Australian currency rose above 77 cents again to settle at $0.7758, and the New Zealand currency rose above 72 cents to trade at $0.7220.
The decline in yields pushed the dollar down below 104 Japanese yen, to trade at 103.66 yen by mid-session in Asia, although the moves were weak.
The dollar index settled at 90.004 after dropping 0.5% on Tuesday, not far from its lowest level in nearly 3 years, which it hit last week at 89.206.
The yield on the US benchmark 10-year Treasury bonds fell more than 6 percentage points from the 10-month high it reached on Tuesday, and the shift halted a 3-day winning streak for the dollar.
