The US dollar today slipped to a three-week low on Wednesday as Treasury yields fell below recent highs and increased risk appetite reduced demand for the safe haven currency.
The US dollar has strengthened this year as Treasury yields increased based on expectations of faster growth and higher inflation. However, growth in treasury revenue began to slow.
The fall in U.S. treasury yields last week has pushed the fall of the US dollar to a weekly low of 2021. Plus the downward trend continues today making the US dollar even more depressed.
Analysts believe the weakening US dollar indicates that investors do not consider this high inflation reading will prompt the Fed to tighten its policy. The decline in US 10 -year bond yields to around 1.62% due to high demand during the 30 -year bond auction also affected the depreciation of the greenback dollar.
The US dollar index, which measures the greenback against other currencies, was down 0.05% to 91.662 as of 10.35 p.m. Data on Tuesday showed that U.S. consumer prices. rose its highest in more than 8 and a half years in March, but not enough to change expectations that the Federal Reserve will maintain near-zero rates for years to come.
The market is now focused on March retail sales data that will be released on Thursday.
