The dollar edged lower as traders continued to weigh comments of Federal Reserve officials for clues on the timing of interest rate cuts next year.
The Bloomberg Dollar Spot Index lost 0.1%, paring Wednesday's 0.3% advance after Fedspeak tempered expectations for earlier rate cuts.
Federal Reserve Bank of Philadelphia President Patrick Harker said the central bank should begin to reduce interest rates — though not immediately. "We don't have to do it too fast, and we're not going to do it right away," Harker said.
"The dollar is top-heavy amid falling US yields," said Keiichi Iguchi, a senior strategist at Resona Holdings Inc. in Tokyo. "Fed officials are trying to push back against rate-cut bets. US economic data are strong but a downtrend is getting clearer for US yields."
AUD/USD rose 0.2% to 0.6745 and NZD/USD advanced 0.2% to 0.6261 with both bought by local exporters amid year-end demand, said an Asia-based FX trader.
Yields on 5- and 10-year US Treasuries rose two basis points each to 3.86%.
USD/JPY fell 0.3% to 143.14, extending Wednesday's 0.2% decline.
Source : Bloomberg
