Home›Forex›Major Pairs›Dollar index extends losses as safe-haven demand eases

Dollar index extends losses as safe-haven demand eases

DXY was trading near 99.90 in Asia, while expectations of a softer safe-haven bid were tempered by a potential bounce in the 10-year Treasury yield.

Reported · Written up by our desk · Major Pairs

The US Dollar Index, or DXY, which tracks the greenback against six major currencies, extended its losses for a second straight day and was around 99.90 during the Asian session on Wednesday, according to FXStreet.

FXStreet linked the continued decline in the dollar to easing safe-haven demand as diplomatic momentum builds around a possible agreement to reopen the Strait of Hormuz. Qatari officials said an interim proposal was drafted, with Washington and Tehran signaling tangible progress to restore access to the key maritime route after Trump suspended planned military strikes against Iran to allow negotiations.

The dollar’s downside was not uniform, FXStreet noted, citing the potential for minor support if the benchmark 10-year US Treasury yield recovers after it fell toward 4.61% on Tuesday. The drop in yields was tied to falling energy prices that cooled inflation fears, even as FXStreet pointed to a more hawkish Fed message from Schmid, who stressed that policy is “not tight” and that inflation remains too high.

Latest closeDollar index 99.88 ▼0.1%

More like this

Sources