The dollar fell against most of its Group-of-10 peers, extending Tuesday's loss following softer-than-expected US inflation data.
Bloomberg Dollar Spot Index fell 0.1% after dropping 1.2% on Tuesday as traders priced in the possibility of Federal Reserve rate cuts by mid-2024.
The euro advanced against the yen to its highest level in more than 15 years as the Asian currency continued to hover near its one year-low.
We do not deny that the USD can soften occasionally, especially on signs of a "Goldilocks" scenario, Charlotte Ong, a European FX strategist at HSBC Global Research, wrote in a note. "But we have two issues with extrapolating this into a longer-term weak USD trend," and they include the likelihood of other central banks turning dovish amid weak global economic momentum, and uncertainties around further disinflation.
The yield on 10-year Treasuries slipped two basis points to 4.43% after dropping 19 basis points on Tuesday.
USD/JPY up 0.2% to 150.59.
EUR/JPY up 0.2% to 163.88, the highest since August 2008.
Japan's economy slipped back into reverse over the summer, underscoring the fragility of the country's recovery and backing the case for continued support from the Bank of Japan and the government.
AUD/USD was down 0.2% to 0.6493.
The Aussie fell as leveraged funds trimmed long positions prior to local wage data, according to Asia-based FX traders.
Source : Bloomberg
