Dollar near several-month low

The US dollar retreated near its lowest levels in several months against a basket of major currencies today, as yields on US Treasury bonds fell from their recent highs, while investors awaited the minutes of the latest meeting of the Federal Reserve (the US central bank) for clues on the future path of interest rates.

The euro rose slightly to $1.1577, remaining close to its two-month high recorded earlier in the week.

The British pound stabilized at $1.3533, maintaining its proximity to its three-month high.

Meanwhile, the Japanese yen held steady at 159.56 against the dollar, after giving up much of the gains achieved following authorities’ intervention, though it remains far from its lowest level in several decades, which stood at around 164 yen per dollar. The dollar index, which measures the performance of the US currency against six major currencies, dipped slightly to 99.65.

Selling pressure in US Treasury bonds appears to have paused temporarily in a week lacking significant economic data or other clear catalysts. Yields on benchmark 10-year US Treasuries fell to 4.702 percent, while 30-year bond yields declined to 5.282 percent.

Harvinder Kalra, chief fixed-income and currency analyst at Alpine Macro, said during an online client webinar, “If the Federal Reserve does not proceed with raising interest rates, the room for bond yields to rise is likely to be very limited.”

Yields on 10-year US Treasuries had previously surged to their highest levels since early 2025, amid a wave of selling in global bond markets driven by concerns over inflation and rising corporate debt issuance.

The yield on 10-year US bonds had risen by approximately two basis points to 4.75 percent, marking its highest level in about 19 months, while yields across various maturities increased by one to two basis points.