DXY Falls on Thursday
The US dollar fell to 102 on Thursday, retreating from an 18-month high as falling Treasury yields weighed on the currency and Federal Reserve officials tempered expectations of an imminent rate increase. Recent economic figures offered little relief on inflation, with US producer prices rising at their fastest pace in more than four years, strengthening bets on tighter monetary policy. However, comments from Fed Vice Chair for Supervision Michelle Bowman and San Francisco Fed President Mary Daly suggested policymakers could wait for additional evidence before deciding on rates at their October 27—28 meeting. Meanwhile, a risk-averse mood supported demand for Treasuries as investors grew concerned about the debt exposure of artificial intelligence companies. Market participants are now looking to further comments from Fed Chair Kevin Warsh for clues on the policy outlook before the central bank’s communications blackout begins on Saturday.
The US dollar fell to 102 on Thursday, retreating from an 18-month high as falling Treasury yields weighed on the currency and Federal Reserve officials tempered expectations of an imminent rate increase. Recent economic figures offered little relief on inflation, with US producer prices rising at their fastest pace in more than four years, strengthening bets on tighter monetary policy. However, comments from Fed Vice Chair for Supervision Michelle Bowman and San Francisco Fed President Mary Daly suggested policymakers could wait for additional evidence before deciding on rates at their October 27—28 meeting.
Meanwhile, a risk-averse mood supported demand for Treasuries as investors grew concerned about the debt exposure of artificial intelligence companies. Market participants are now looking to further comments from Fed Chair Kevin Warsh for clues on the policy outlook before the central bank’s communications blackout begins on Saturday.