U.S. dollar weakens while keeping a positive outlook

On Wednesday, the U.S. dollar fell while remaining well-supported as investors prepared for an interest rate increase in March.

U.S. 10-year Treasury yields reached a new two-year high of 1.903% on Wednesday. However, it was last down four basis points at 1.8272%. In afternoon trading, the U.S. dollar index fell by 0.4% at 95.528.

Bond yields also increased. The sterling, the euro, New Zealand dollars, the Canadian, Australian, and others gained.

In the meantime, the Sterling rose after British inflation grew 5.5% in December. It marked its highest level in 30 years, raising rate hike expectations.

Senior F.X. trader and strategist Juan Perez talked about the process. He said that central banks see the evidence that Q4 did not slow the speed of inflation. He added that places like the U.K. are undergoing CPI numbers not seen since 1990.

Juan Perez also said that they see the dollar gaining short-term.

The Fed has a meeting scheduled for the next week. They will probably provide details on the end of easing, possibly in March. The U.S. central bank might also signal to raise interest rates in March, straight after ending Q.E.

Currency bid prices overview of the U.S. dollar

Dollar index 95.5071 95.7140 -0.22% -0.164% +95.7921 +95.4940

Euro/Dollar $1.1353 $1.1328 +0.22% -0.16% +$1.1357 +$1.1319

Dollar/Yen 114.2401 114.5900 -0.32% -0.76% +114.7851 +114.2050

Euro/Yen 129.68 129.79 -0.09% -0.51% +129.9800 +129.4000

Dollar/Swiss 0.9154 0.9175 -0.25% +0.35% +0.9177 +0.9145

Sterling/Dollar $1.3627 $1.3598 +0.22% +0.77% +$1.3648 +$1.3588

Dollar/Canadian 1.2492 1.2513 -0.17% -1.21% +1.2524 +1.2450

Aussie/Dollar $0.7225 $0.7187 +0.54% -0.62% +$0.7238 +$0.7177

Euro/Swiss 1.0392 1.0391 +0.00% +0.22% +1.0403 +1.0375

Euro/Sterling 0.8331 0.8328 +0.02% -0.83% +0.8342 +0.8314

NZ $0.6796 $0.6765 +0.45% -0.72% +$0.6811 +$0.6764

Dollar/Dollar

Dollar/Norway 8.7610 8.8126 -0.58% -0.55% +8.8220 +8.7490

Euro/Norway 9.9446 9.9682 -0.25% -0.68% +9.9947 +9.9215

Dollar/Sweden 9.0958 9.1357 -0.21% +0.87% +9.1551 +9.0906

Euro/Sweden 10.3257 10.3476 -0.21% +0.91% +10.3686 +10.3160

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