The dollar hovered near multi-month lows on Wednesday as Treasury yields eased from recent highs, with investors awaiting the Fed's July meeting minutes. The South Korean won led gains among Asian currencies while the Indian rupee extended a five-session losing streak.
The US Dollar Index was last down 0.2% at 99.48, remaining near its lowest level since early June. The retreat tracked a pullback in U.S. Treasury yields after their recent surge had pressured emerging-market assets.
Treasury yields retreat from recent highs
The 10-year Treasury yield eased to 4.68%, retreating from recent highs. The 30-year yield slipped to 5.27%. Markets are focused on the Federal Reserve's July meeting minutes, due later Wednesday, for signs on whether the central bank will keep rates higher for longer or deliver a hike this year.
However, the Fed kept its benchmark rate in a 3.50%-3.75% range at its July 29 meeting in a 9-3 vote, with the dissent underscoring divisions among policymakers. The dollar has come under pressure after softer U.S. inflation readings and unexpected July job losses reduced expectations of further rate hikes.
Won hits one-year high, rupee keeps falling
The dollar's weakness gave Asian currencies some breathing room, though gains were restrained by elevated oil prices and lingering geopolitical risks. Brent crude remained above $91 a barrel, with uncertainty over Middle East energy supplies continuing to fuel inflation concerns.
Meanwhile, the USD/JPY pair fell 0.3% to 159.21 yen, though the yen remained under pressure despite recent efforts by Japanese and U.S. authorities to support the currency. The South Korean won was the top gainer, with USD/KRW dropping nearly 1% to its lowest since September 2025. The AUD/USD pair fell 0.3%.
By contrast, the Indian rupee extended losses for a fifth straight session, with USD/INR last trading 0.1% higher at 95.75 rupees. The currency has been hurt by higher oil prices and rising global bond yields, despite reports of likely intervention by the Reserve Bank of India.
Source: Investing.com
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