Hot Now
LONDON: The dollar dipped against the basket of currencies that measures its broader strength on Tuesday, low 10-year U.S. Treasury yields underlining the collapse of faith in a promised boost to growth and inflation from the Trump administration.
Moves in the major currencies were tight, but the common denominator was a broadly weaker dollar, down 0.2 percent against the yen, the euro and as much as half a percent against a resurgent New Zealand dollar.
"The 10-year Treasury yield is down 2 basis points and that is feeding through to the dollar underperforming," said Sam Lynton-Brown, a currency strategist with BNP Paribas in London.
"The market was positioned very short of the kiwi so there has been a bit of a squeeze there.
Dollar-yen (also) hasn´t adjusted lower in terms of what we are seeing in the yields and there is a risk for a correction towards 110 yen.
"By 0735 GMT, the dollar index was down 0.2 percent on the day at 96.820, just off a 6-1/2 month low of 96.797 hit mid-session on Monday. It traded at 111.18 yen and $1.1257 per euro, having traded at $1.1268 - its weakest since Trump´s election last November.