Dollar nears multi-week lows ahead of Fed policy meeting
The dollar lingered near multi-week lows against major peers on Tuesday, weighed by lower Treasury yields as traders consolidated positions ahead of the Fed policy meeting this week.
The safe-haven dollar fell after world stocks began the week with record highs amid rising investor confidence in a fast global pandemic recovery.
The dollar index steadied at 90.859 in early Asian trade, following a low of 90.679 hit overnight. The dollar rose 0.1% to 108.18 against the yen, continuing its recovery from a seven-week low of 107.48 hit on Friday.
The dollar dropped almost 3% since late March as U.S. Treasury yields traded in narrow ranges after dropping from a 14-month high of 1.7760%.
The 10-year U.S. Treasury yield traded around 1.58% on Tuesday. It tracked sideways since dropping to a one-month low of 1.528%.
The euro fell 0.1% to $1.2078, while the risk-sensitive Aussie lost 0.1% to $0.7791. In offshore trade, the yuan slid 0.1%, following a seven-week high of $6.4710 hit on Monday.