Dollar drifts near multi-month lows as Treasury yields ease; Fed minutes awaited

The greenback hovered near its lowest levels in several months against major currencies on Wednesday, according to Business Recorder, as US government bond yields retreated from recent peaks. Traders were waiting for the Federal Reserve to publish the record of its latest policy meeting later in the day, hoping it would reveal how officials see future rates. The euro climbed to $1.1577, not far from a two-month peak set earlier in the week.

Sterling held steady at $1.3533, close to a three-month high, while British inflation figures due later on Wednesday are expected to point to stubborn price pressures. The yen was unchanged at 159.56 per dollar after surrendering most of its gains from intervention, though it still sits far above a multi-decade low near 164. The dollar index dipped slightly to 99.65.

The 10-year Treasury yield kept sliding to 4.702%, while the 30-year yield dropped to 5.282%, as a selloff appeared to pause during a week with little economic data. Recent figures have pointed to a slowing American economy, including job losses in July and mild inflation, leading traders to trim bets on rate increases. Oil prices climbed toward three-week peaks as the Middle East standoff continued, which keeps inflation concerns in play. On Tuesday, Trump denied any talks with Iran and claimed Hormuz remained open, whereas Tehran says the waterway is still shut to ships.