SINGAPORE- The dollar fell broadly on Wednesday as it tracked a global decline in bond yields, while traders awaited minutes of the Federal Reserve’s latest policy meeting due later in the dayfor further clues on the central bank’s rate outlook.
The greenback slipped below 150 yen in Asia trade and last bought 149.97 yen, giving the Japanese currency some breathing space having been pinned near a three-month low in previous sessions.
In the past, traders have viewed 150 as a line in the sand that could trigger currency intervention from Japanese authorities, such as was the case in late 2022.
The move lower in the dollar has come on the back of a dip in US Treasury yields in line with its global peers.
That followed lower-than-expected Canadian inflation data and euro zone wage growth — all of which sent domestic yields falling as it ramped up expectations for rate cuts by global central banks this year.
The Canadian dollar was last marginally higher at 1.35085 per US dollar, while the euro rose 0.06 percent to $1.0814.
The US dollar index fell 0.05 percent to 103.99.
“Interestingly, the order and extent of policy moves that are implied by market rates seem to have only the vaguest of correlations with the levels of economic activity in each of the G10 economies,” said Jane Foley, senior FX strategist at Rabobank.
“It is clear that the process of calibrating the timing and pace of central bank policy moves this year still has some way to go.”
