The weakness of the greenback continued until the opening of the European session as treasury yields continued to decline lower, with investors increasingly confident that the Federal Reserve (Fed) will maintain interest rates for some time.
In a recent statement Fed Chairman Jerome Powell said the U.S. central bank would reduce its monthly bond purchases before raising interest rates which is unlikely before the end of 2022.
This caused U.S. treasury yields to move further away from the 14 -month high it had previously reached, and fall to around 1.615%.
Unemployment claims and retail sales data to be released tonight will be watched by investors for clues about the US economic recovery.
The euro took advantage of the opportunity to rise to a 4 -week high following the depreciation of the US dollar by trading strongly around the price of 1.19700.
Meanwhile, the pound is still struggling to break the 1.38000 price level despite the decline in the greenback dollar.
Moreover, commodity -related currencies climbed higher, with the kiwi and Aussie dollars soaring to nearly 4 -week highs against the USD.
On the other hand, the Russian Ruble depreciated more than 1% on reports that the United States would announce sanctions against Russia on Thursday on allegations of election interference and cyber -attacks.
