Dollar eases from 18-month high as Treasury yields fall and Fed hike bets ease
TLT•The dollar fell 0.2% to 102.03 after reaching an 18-month high, as falling Treasury yields and cautious Fed comments tempered bets on an October rate hike. The euro and sterling each rose 0.5%.
1. Dollar pulls back
The dollar slipped from an 18-month peak on Thursday as a sharp drop in Treasury yields weighed on the currency. The dollar index was down 0.2% at 102.03, while the euro rose 0.5% to $1.1216 and sterling gained 0.5% to $1.3253.
2. Rate hike bets ease
The 10-year Treasury yield fell to 5.085% and the 30-year yield to 5.428%, both around three-week lows. Market pricing for an October Fed rate hike had risen to 50% after stronger-than-expected inflation data, but officials’ cautious remarks tempered those expectations. Investors were watching US producer prices and retail sales, due later Thursday, for further clues.
