The U.S. dollar declined in late trading on Monday due to a drop in U.S. Treasury yields.
The dollar index, which measures the greenback against six major peers, fell 0.59 percent to 105.5372 in late trading.
The yield on the 10-year U.S. Treasury bond reached 5.021 percent, but later retreated. This decline in U.S. Treasury yields resulted in reduced expectations of a Federal Reserve interest rate hike, causing the U.S. dollar to lose appeal.
Foreign exchange market activities were muted on Monday as traders awaited key events scheduled for this week, such as the European Central Bank meeting, the release of U.S. GDP data, and the Fed’s preferred inflation gauge. Fed members are currently in a blackout period prior to the Federal Open Market Committee meeting starting on October 31.
In late New York trading, the euro increased to 1.0674 U.S. dollars from 1.0592 U.S. dollars in the previous session, while the British pound rose to 1.2255 U.S. dollars from 1.2158 U.S. dollars.
The 10-year Japanese Government Bond is near 0.86 percent, which is the highest level since 2013. The Bank of Japan is reportedly considering adjustments to its yield curve control program, which caused the U.S. dollar to buy 149.5640 Japanese yen, down from 149.8590 Japanese yen in the previous session.
The U.S. dollar weakened against the Canadian dollar, falling from 1.3701 Canadian dollars to 1.3682 Canadian dollars, and it also declined against the Swiss franc, dropping from 0.8918 Swiss francs to 0.8910 Swiss francs. Moreover, the U.S. dollar fell against the Swedish krona, slipping from 10.9724 Swedish krona to 10.9599 Swedish krona.
