Dollar Weakens as Bond Market Stabilizes Ahead of Fed Minutes
The U.S. dollar weakened against major currencies on Wednesday as a selloff in Treasuries eased, with investors anticipating insights from the Federal Reserve's policy meeting minutes due later that day. A lack of significant economic data has heightened market focus on these minutes for guidance amid uncertainty around interest rates and rising geopolitical tensions in the Middle East. The euro rose to $1.1611 while sterling climbed to $1.3562 following UK inflation figures, and the yen strengthened after retreating from a key level. The dollar index fell 0.29% as Treasury yields declined slightly but remained elevated. Analysts warned that further increases in bond yields could impact stock valuations and market stability. Meanwhile, oil prices rose due to Middle East tensions, keeping inflation risks alive despite recent signs of a softer U.S. economy.
Topics: Federal Reserve minutes foreign exchange market Treasury yields U.S. dollar