Dollar hits four-week low as Fed’s dovish message takes hold

The dollar dropped to a new four-week low against major peers on Thursday as Treasury yields fell back from last month’s surge. Investors are becoming increasingly convinced that the U.S. Federal Reserve will keep interest rates low for some time. 

The dollar index fell to 91.559 in Asian trade, its lowest since March 18. It last stood at 91.666. The euro jumped as high as a four-week top of $1.1989 before trading at $1.19735.

The dollar changed hands at 108.87 yen after falling to a three-week low of 108.755 on Wednesday.

The 10-year U.S. Treasury yields slid to 1.6342% in Asian trade, well below a 14-month high of 1.776% hit late March.

A weaker dollar supported commodity currencies, with the Aussie climbing to as high as $0.7745 on Thursday. It rallied 1% in the last session as it broke out of a range. The kiwi also reached a three-week peak of $0.7160.