© Reuters. The dollar will slide as the euro gains ground
The dollar slides against a basket of currencies on Wednesday, while yields on us Treasury bonds continue to weigh on risk appetite.
The index dollar, which measures the greenback’s strength against a basket of six major currencies, fell 0.2% to 93.70 at 03:30 AM ET (08:30 AM GMT).
The u.s. Treasury 10-year declined this year to 2,354%, compared to 2,446% at the end of 2016, even as the federal Reserve has raised interest rates three times since December.
Investors worried about the weakness of bond yields in the longer term, a sign of a worsening outlook for growth and inflation.
The dollar declined against the yen, with USD/JPY down 0.36% to 112.04, which is close to a low of 111.87 reached on Monday, its lowest level since October 16.
Against the euro, the dollar has declined, with the EUR/USD up 0.22% to 1.1763, away from a lower to a week of 1.1712 reached during the night.
The euro reached a low against the yen, with EUR/JPY down 0.14% to 131.83 after having declined to 131.160 Monday, its lowest level since mid-September.
The euro remains under pressure on the uncertainty related to the efforts of the German chancellor Angela Merkel to form a government.
Investors fear that the upheaval of the first economy of Europe, reducing the prospects of the European Union and the euro.
The book change little against the dollar with the GBP/USD at 1.3243, while the markets await the annual budget of the uk on Wednesday.
The euro rose against the pound with EUR/GBP up 0.18% at 0.8880, after having declined to a low of a week and a half of 0.8841 the day before.
The exchange volumes should have remained relatively low prior to the Thanksgiving holiday in the United States on Thursday, which is also a national holiday in Japan.
Investors await the minutes of the November meeting of the Fed which is expected to be made public this Wednesday.
